Annual BudgetFiscal Year 2020

(July 1, 2019 - June 30, 2020)

HRSD Annual Budget For Fiscal Year 2020

(July 1, 2019 – June 30, 2020)

Table of Contents

I. Introduction Page

General Manager's Introduction 1

Principal Officials 4

Key Facts 5

HRSD Service Area 6

Organization Chart 7

History of HRSD 8

Rate Schedules 9

Reader’s Guide to the Annual Budget 10

Glossary of Financial Terms 13

II. Financial Forecast 15

III. Operating Budget 17

Operating Budget Summary 18

Operating Budget Charts 20

Department Budgets

General Management 22

Communications 23

Finance 24

Information Technology 25

Talent Management 26

Operations 27

Engineering 29

Water Quality 30

General Expenses, Debt Service and Transfers 31

IV. Capital Budget 33

FY-2020 to FY-2029 Cash Flow Projections 36

Introduction

General Manager’s Introduction

The voters of Virginia took the bold step in 1940 to address pollution in the Hampton Roads by approving a referendum creating the Hampton Roads Sanitation District (HRSD). That public approval capped a 15-year grassroots campaign that began when the shell-fishing beds in the Hampton Roads were closed by the Virginia Department of Health. At the time, over 30 million gallons of untreated sewage was being dumped into the waters of the Hampton Roads each day. It would take the United States Congress another 32 years to tackle the issue of water pollution on a national scale, finally passing the Clean Water Act in 1972. Over the past 79 years, HRSD has developed into one of the premier wastewater treatment organizations in the nation. With 18 treatment facilities capable of treating 249 million gallons of wastewater each day, HRSD has eliminated the discharge of untreated sewage into the waters of Hampton Roads from the homes and businesses within our region. However, there is more work to be done to further improve water quality as well as preserve our 79-year investment in wastewater infrastructure. The Governor-appointed, eight-member HRSD Commission approved this Fiscal Year 2020 budget at its regular meeting on May 28, 2019. The Commission and the HRSD staff worked diligently to balance our focus on stewardship of our ratepayers’ hard earned dollars with our mission of stewardship of the waters of the Hampton Roads. The cost of wastewater treatment continues to rise here, as it does across the nation. However, wastewater treatment is still a bargain in Hampton Roads, with the typical household paying about $1 per day for this essential service, protecting public health and our treasured local waterways.

Federal Mandates Drive HRSD Spending

The regional sewer system, although never designed to handle storm water, fills with rainwater runoff, ground water and tidal water during larger storms. At times, the regional system fills beyond capacity and overflows onto local streets. While these occasional overflows have minimal impact on water quality, the U.S. Environmental Protection Agency has made minimizing these types of events a national priority, and HRSD is under a Federal mandate to invest nearly $2 billion (equaling more than $4,200 per HRSD customer account) to further reduce the number and volume of overflows from the regional sewer system. In response to this mandate, HRSD is working throughout the region, in partnership with the local governments we serve, to minimize the impact of storm events on the regional sewer system and the waterways we value so greatly. The Federally mandated requirement to reduce the amount of nutrients that HRSD’s treatment plants discharge into the Chesapeake Bay has also required a significant investment in infrastructure and process improvements. The investments by HRSD along with all of Virginia’s wastewater treatment plants in the Bay watershed have resulted in Virginia meeting the 2025 goal for nutrient reductions from wastewater treatment plants a full seven years ahead of the 2025 target date (Chesapeake Bay Foundation’s 2017 Virginia Midpoint Assessment). Unfortunately, the agricultural and stormwater required reductions in Virginia are lagging behind, and Virginia is looking to require further expensive reductions from wastewater treatment facilities to compensate for the lack of progress with these other major nutrient sources.

Pursing Innovative Solutions to Reduce Costs and Protect Water Quality

HRSD continues to lead international research efforts to reduce the cost of removing nutrients from wastewater. HRSD’s research work is leveraged through partnerships with leading universities and other

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innovative wastewater utilities throughout the world. Putting the knowledge gained into practice has already yielded a significant return on our investment by reducing operational costs for nutrient removal as well as minimizing the capital investment required to construct new systems. A recent estimate of the value of this research found that implementation of these practices has kept energy and chemical costs from rising nearly $40 million over the past 10 years. Throughout HRSD’s history, changing regulations have required development and implementation of innovative solutions to meet new standards to protect and restore the quality of the waters of Hampton Roads. Treatment processes have progressed from primary, to secondary, to our current advanced nutrient removal processes. Each regulatory change has required significant investment in new treatment processes. Under current regulations, the treated water HRSD discharges to area waterways is nearly clean enough to drink and substantially cleaner than the waterways themselves. With the addition of a few more treatment processes, HRSD can produce water that exceeds drinking water standards, likely to be the ultimate regulatory mandate at some point in the future. With the various water-related challenges facing Hampton Roads and the Commonwealth, it appears there could be significant benefit from HRSD investing in additional treatment processes to treat water to meet drinking water standards as soon as possible, even before that becomes a regulatory requirement. The challenges of restoring the Chesapeake Bay, the depletion of our groundwater reserves, the impact of sea level rise and the threat of salt-water contamination of coastal groundwater may all be addressed with HRSD’s Sustainable Water Initiative for Tomorrow (SWIFT). The concept is for HRSD to treat water to meet drinking water standards and use it to recharge the groundwater aquifer, providing a sustainable source of groundwater, slowing the rate of land subsidence due to over withdrawal of the groundwater, blocking salt water intrusion with a pressurized fresh water barrier and practically eliminating HRSD nutrient discharges to the York, James and Elizabeth Rivers. The benefits of SWIFT are significant and are needed immediately.

Financing a Sustainable Water Future

HRSD is pursuing SWIFT with a goal of obtaining required approvals to construct full-scale facilities beginning in 2020. The SWIFT Research Center began operations in May 2018 and has already recharged the aquifer with over 100 million gallons of SWIFT Water, wastewater treated to meet drinking water standards. HRSD is committed to full scale implementation of this initiative only if it can be accomplished within the financial framework laid out in the Financial Forecast as presented in this budget. In a rare bipartisan move, Congress passed H.R. 7279 in December 2018 and signed by the President in January 2019, amending the Federal Water Pollution Control Act “to provide for an integrated planning process, to promote green infrastructure, and for other purposes.” This new law codifies the integrated planning process HRSD has already been using to prioritize our investments in clean water mandates. Integrated planning provides the ability to defer many of the proposed capital improvements related to reducing system overflows until after SWIFT is complete. HRSD remains committed to eliminating system overflows; however, the impact of those transient events on local water quality is minimal and the benefits nearly unperceivable. In contrast, the positive impact SWIFT will have on local waterways, eastern Virginia and the entire Chesapeake Bay is significant, will be immediately evident and critical to sustaining the vitality and prosperity of Hampton Roads and all of eastern Virginia for generations to come. Reducing overflows from the regional sewer system and reducing the amount of nutrients discharged by our treatment plants are both driven by regulations with which HRSD must comply. These regulatory mandates consume over 80 percent of the $2.8 billion 10-year Capital Improvement Plan. It is within that portion of our capital improvement plan that we will reprioritize mandated projects to allow construction of SWIFT, to achieve significantly more environmental benefits without influencing our Financial Forecast.

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HRSD finances its capital projects by issuing bonds and using cash on hand. Over the past 10 years, the annual investment in capital projects (debt payments and cash funded) has grown from less than 38 percent of HRSD’s total revenue to more than 50 percent with the Fiscal Year 2020 budget. HRSD is investing in the regional wastewater infrastructure to ensure we leave a fully functional system to the next generation. While HRSD continues to focus on making the right investments in Hampton Roads, across the nation the need for investment in all infrastructure continues to grow. The American Society of Civil Engineers’ 2017 Infrastructure Report Card graded the current state of wastewater infrastructure at a D+. The US Water Alliance’s Report, The Economic Benefits of Investing in Water Infrastructure, estimates the unmet wastewater investment at over $82 billion per year. The report highlights the lack of adequate federal investment in wastewater infrastructure, showing the drop in federal investment from 63 percent in 1977 to less than 9 percent in 2016. State, regional and local governments have had to fill that funding gap, passing on significant rate increases as utilities must price service to recover full costs. In Fiscal Year 2020, despite the lack of federal funding and HRSD’s significant commitment to maintaining the appropriate level of investment in wastewater infrastructure in Hampton Roads, our average residential customers will see their monthly bills increase by less than 10 cents per day.

The Community’s Role

Our ratepayers can help control their costs by helping us control ours. Ensuring storm water runoff from downspouts, area drains and sump pumps is not directed to the sanitary sewer system, and ensuring privately owned service piping is well maintained and leak free will reduce the amount of water in the sewer system. This ultimately lowers our costs to pump and treat the region’s wastewater. Collecting fats, oils and grease in a container for disposal in the trash, as opposed to pouring them down the drain, reduces wastewater system maintenance and operating costs. Proper disposal of unused medications (and other substances) prevents them from reaching our treatment plants, which are not designed for removal of such substances. Our ratepayers can make a difference by not flushing unused medications down the sink or the toilet. Every flush counts. As we reflect on 79 years of protecting public health and the waters of Hampton Roads, we remember the mandate so boldly declared by those environmentally concerned Virginians in 1940. It was their foresight that allows us to enjoy the waters of Hampton Roads today. It will take our continued innovation, investment and foresight to ensure future generations will inherit clean waterways and be able to keep them clean. Sincerely,

Ted Henifin, P.E. General Manager

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Principal Officials May 28, 2019

COMMISSIONERS

Frederick N. Elofson, CPA, Chair

Maurice P. Lynch, PhD, Vice-Chair

Michael E. Glenn Vishnu K. Lakdawala, PhD Willie Levenston, Jr.

Stephen C. Rodriguez Elizabeth A. Taraski, PhD Molly J. Ward

COMMISSION SECRETARY

Jennifer L. Cascio

SENIOR STAFF

Edward G. Henifin, PE General Manager

Jay A. Bernas, PE Director of Finance

and Treasurer

Charles B. Bott, PhD, PE Director of Water Technology

And Research

Donald C. Corrado Director of Information

Technology

Steven G. de Mik, CPA Director of Operations

Paula A. Hogg Director of Talent Management

Bruce W. Husselbee, PE Director of Engineering

James J. Pletl, PhD

Director of Water Quality Leila Rice, APR

Director of Communications

COUNSEL

Kellam, Pickrell, Cox & Anderson, PC General Counsel

Jones, Blechman, Woltz & Kelly, PC Associate Counsel

AquaLaw, PLC

Special Counsel Norton Rose Fulbright US, LLP

Bond Counsel

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Key Facts

Service Area and Operations

Date Established November 5, 1940

Communities Served 18 communities encompassing 3,087 square miles

HRSD is a political subdivision of the Commonwealth of Virginia, created for the specific purpose of water pollution abatement in Hampton Roads by providing a system of interceptor mains and wastewater treatment plants.

Population Served About 1.7 million, nearly one-fifth of Virginia’s population, reside in HRSD’s service area.

Operation and Facilities

No. of Positions (FY-2020) 847

Miles of Interceptor Systems 542 Miles

Wastewater Treated 145 million gallons per day average

Wastewater Capacity 249 million gallons per day average

Financial Information

Bond Ratings

Ratings Agency

Senior Debt Subordinate Long-term

Subordinate Short-term

Standard & Poor’s AA+ AA A-1+ Fitch Ratings AA+ AA F1+

Moody’s Investors Service Aa1 Aa2 n/a Operating Budget (FY-2020) $337,805,000

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HRSD Service Area A Political Subdivision of the Commonwealth of Virginia

Facilities include the following:

1. Atlantic, Virginia Beach 2. Chesapeake-Elizabeth, Va. Beach 3. Army Base, Norfolk 4. Virginia Initiative, Norfolk 5. Nansemond, Suffolk 6. Lawnes Point, Smithfield 7. County of Surry 8. Town of Surry

9. Boat Harbor, Newport News 10. James River, Newport News 11. Williamsburg, James City County 12. York River, York County 13. West Point, King William County 14. King William, King William County 15. Central Middlesex, Middlesex County 16. Urbanna, Middlesex County

Serving the Cities of

Chesapeake, Hampton, Newport News, Norfolk,

Poquoson, Portsmouth, Suffolk, Virginia Beach, Williamsburg and the

Counties of Gloucester, Isle of Wight, James City,

King and Queen, King William, Mathews, Middlesex, Surry* and York

*Excluding the Town of Claremont

05/2017

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Commission

General Manager

Director of Communications

Community Education and

Outreach Specialist

Public Information Specialist

Director of Engineering

Asset Management

Design and Construction-NS

Design and Construction-SS

Design and Construction-

SWIFT

Planning and Analysis

Director of Finance

Accounting

Business Intelligence

Customer Care Center

Procurement

Director of Information Technology

Enterprise Data Services

Information Systems Security

Information Technology

Operations and Support

Director of Operations

Electrical and Instrumentation

Interceptor Systems-NS and

Small Communities

Interceptor Systems-SS

Support Systems

Treatment Plants AB-CE-VIP

Treatment Plants AT-BH-NTP

Treatment Plants JR-WB-YR

Director of Water Technology and

Research

Director of Talent

Management

Human Resources

Organizational Development and

Training

Safety

Director of Water Quality

Central Environmental

Laboratory

Pretreatment and Pollution Prevention

Technical Services

Commission Secretary

HRSD Organization Chart July 1, 2019

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History of HRSD HRSD can trace its beginnings to 1925 when the Virginia Department of Health condemned a large oyster producing area in Hampton Roads. The closure resulted in the Virginia General Assembly creating in 1927 a "Commission to Investigate and Survey the Seafood Industry of Virginia." Other studies recommended a public body to construct and operate a sewage system in the area. HRSD was named after Hampton Roads, a ship anchorage used for five centuries located near the convergence of the James, Elizabeth and Nansemond Rivers, before they flow into the Chesapeake Bay in southeastern Virginia. In 1934, the Virginia General Assembly created the Hampton Roads Sanitation Disposal Commission with instructions to plan the elimination of pollution in Hampton Roads. Recommendations were made to the General Assembly, which resulted in the Sanitary Districts Law of 1938, along with "an Act to provide for and create the Hampton Roads Sanitation District." This Act required the qualified voters within HRSD to decide in a general election on November 8, 1938, if they favored creation of such a District. This referendum failed to gain a majority by about 500 votes out of nearly 20,000 votes cast. This led to a revision of the Act and another referendum was held on November 5, 1940, which resulted in a majority vote for the creation of the Hampton Roads Sanitation District. The Enabling Act provides for HRSD to operate as a political subdivision of the Commonwealth of Virginia for the specific purpose of water pollution abatement in Hampton Roads by providing a system of interceptor mains and wastewater treatment plants. Its affairs are controlled by a Commission of eight members appointed by the Governor for four-year terms. Administration is under the direction of a General Manager, supported by department directors and their staffs. HRSD began operations on July 1, 1946, using facilities acquired from the United States Government. The Warwick County Trunk Sewer, HRSD's first construction project, began on June 26, 1946, and was funded by HRSD's $6.5 million Primary Pledge Sewer Revenue Bonds, dated March 1, 1946. The first treatment plant, the Army Base Plant, began operation on October 14, 1947. Since that time, the facilities of HRSD have grown to provide sanitary sewer service to all major population centers in southeastern Virginia. The population served has increased from nearly 288,000 in 1940 to about 1.7 million in 2017. Throughout its rich history HRSD has earned many of its industry’s most prestigious awards. This tradition continued as the National Association of Clean Water Agencies (NACWA) presented Peak Performance Awards for outstanding compliance with National Pollutant Discharge Elimination System (NPDES) permits to every HRSD treatment plant during calendar year 2017. The major treatment plants received the following awards in recognition of their outstanding permit compliance status: Atlantic—Gold, Boat Harbor—Platinum (16 consecutive years), Chesapeake-Elizabeth—Silver, James River—Gold, Nansemond—Platinum (16 consecutive years), Virginia Initiative Plant—Platinum (22 consecutive years), Williamsburg—Platinum (23 consecutive years) and York River— Platinum (10 consecutive years). Three treatment plants in the Small Communities Division, Central Middlesex, King William and Urbanna, earned Silver Awards while West Point received a Gold Award. Highlighting 2018, HRSD’s SWIFT (Sustainable Water Initiative for Tomorrow) Program was awarded the U.S. Water Prize for the public sector by the U.S. Water Alliance. HRSD’s other honors received in 2018 include the NACWA National Achievement Award - Workforce Development Award for the HRSD Apprenticeship Program and the NACWA National Achievement Award - Operations & Environmental Performance Award for the HRSD Pump Station Architectural Guidelines. HRSD also earned a National Award from the American Council of Engineering Companies (ACEC) for the HRSD Norchester Pump Station. And, HRSD was recognized by the Elizabeth River Project as a Sustained Distinguished Performance Model Level River Stars Business.

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Service FY-2020 FY-2019Flow (monthly basis) Per CCF * $ 5.86 $ 5.37 Minimum charge (per day) 0.30 0.30 Surcharge, per milligrams/liter per CCF In Excess of Biochemical Oxygen Demand (BOD) 282 mg/L $ 0.000129 $ 0.000104 Total Suspended Solids (TSS) 261 mg/L 0.000630 0.000592 Total Phosphorus (TP) 6 mg/L 0.009871 0.009535 Total Kjeldahl Nitrogen (TKN) 47 mg/L 0.003378 0.003595 Surcharge, per 100 pounds BOD 282 mg/L $ 2.07 $ 1.67 TSS 261 mg/L 10.08 9.49 TP 6 mg/L 158.12 152.74 TKN 47 mg/L 54.11 57.59 Septic, per gallon $ 0.1717 $ 0.1697 Residential flat rate (per 30-day period) $ 48.64 $ 34.91

Meter Size FY-2020 FY-2019 5/8 Inch $ 1,905 $ 1,895 3/4 Inch 4,210 4,830 1 Inch 7,410 8,170 1 ½ Inch 16,645 17,260 2 Inch 30,505 30,510 3 Inch 73,810 70,800 4 Inch 138,445 128,660 6 Inch 336,960 298,610 8 Inch 634,710 542,680 10 Inch 1,038,525 862,550 12 Inch 1,554,120 1,259,520 14 Inch 2,186,505 1,734,700 16 Inch 2,940,135 2,289,010

Flow (monthly basis) FY-2020 FY-2019 Per 1,000 gallons King William $ 13.82 $ 13.25 Mathews 13.43 12.71 Surry 13.43 12.71 Urbanna 15.48 14.84 West Point 15.71 14.95 Residential flat rate (per 30-day period) King William $ 55.28 $ 53.00 Mathews 53.72 50.84 Surry 53.72 50.84 Urbanna 61.92 59.36 West Point 62.84 59.80

FY-2020 FY-2019Damaged lock $ 100 $ 100 Service restoration 100 100 Meter reading (customer-owned meter) 75 75 Inaccessible meter 50 50 Access card replacement 25 25 Returned payments 25 25 Delinquency service trip 15 15 Account documentation 10 10 Deduction meter 2 2

FEES

Rate Schedules WASTEWATER TREATMENT RATE SCHEDULE

* CCF = 100 Cubic Feet (approximately 748 gallons)

VOLUME BASED FACILITY RATE SCHEDULE

SMALL COMMUNITIES RATE SCHEDULE

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Reader’s Guide to the Annual Budget

PURPOSE The Annual Budget is an instrument that sets HRSD’s budgetary policy and authorization to raise revenues and spend funds each fiscal year. The development of the Annual Budget is guided by HRSD’s mission and vision statements:

• HRSD’s mission is to protect public health and the waters of Hampton Roads by treating wastewater effectively.

• HRSD’s vision is future generations will inherit clean waterways and be able to keep them clean.

ANNUAL BUDGET OVERVIEW HRSD’s Annual Budget contains the following sections:

Financial Forecast This section provides a high level, 20-year forecast of projected retail rate increases, operating revenues and expenses, capital improvements and related funding sources, amounts contributed to and fiscal year-end balances of cash and investment reserves, and selected financial ratios that help to measure the financial health of HRSD. The forecast is an inflationary based model where trends from past fiscal years and proposed operating budgets are used to forecast future operating needs. Transfers to reserves and to the Capital budget are forecast to be in amounts that are not less than parameters established within HRSD’s Financial Policy. Debt service for permanent financings are generally forecast to have a maximum term of 30 years at an interest rate that approximates 20-year average fixed rates for HRSD. Interim, or construction, financings’ interest rates are based on a 10-year historical average. Operating Budget The Operating Budget represents the authorization by the HRSD Commission to spend funds directly related to operating and maintaining HRSD’s programs and assets during the fiscal year. This section includes each department’s annual operating budgets. Those expenses that are not attributable to a specific department are assigned to “General Expenses.” Transfers represent authorization to transfer revenues raised from operations to either the Capital Budget or to various reserves established in HRSD’s Financial Policy. The Operating Budget Summary provides the budget by department and major object code classification. Department Budgets and General Expenses, Debt Service and Transfers detail budget expenditures by major object code classification. The number of full-time positions authorized for the fiscal year is provided by department.

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Capital Budget

The Capital Budget represents a plan of specific, major capital improvements over a period of ten fiscal years. The Capital Budget is not an approval or appropriation of funds for individual projects. There is no authorization or funding for individual projects until the Commission acts on the specific project. The Commission formally authorizes spending for individual projects throughout a fiscal year and generally upon project initiation.

The Summary Schedule details the funding sources for capital improvements as well as planned expenditures.

A formal, detailed, Capital Improvement Program with more specific project information is available at https://www.hrsd.com/cip.

HRSD’s budget authorizations, capital improvement plans, user rate setting practices and other significant financial practices are guided by HRSD’s Financial Policy. The Financial Policy and Revenue Policy are available at https://www.hrsd.com/finance.

HRSD’s Rate Schedule is available at https://www.hrsd.com/finance.

BUDGETARY PROCESS

HRSD prepares its Annual Budget under the provisions of its enabling legislation and its Trust Agreement, dated March 1, 2008. In accordance with those provisions, the following process is used to adopt the Annual Budget:

The process begins in late December with the issuance of the Annual Budget Instructions by the General Manager. Each department completes its Operating Budget by March 1 for the General Manager’s review.

The HRSD Commission appoints a Finance Committee which typically consists of two Commissioners. The committee meets in early April to review the budgets. The Commission reviews these budgets during its April meeting.

The final Annual Budget, which incorporates the Operating and Capital Budgets, is presented at the May Commission meeting for adoption. The Commission simultaneously adopts the budget and any resulting wastewater rate schedule changes. All rate adjustments must be publically advertised four consecutive weeks before they can take effect.

The HRSD Commission approves any budget amendments during the fiscal year.

BUDGETARY ACCOUNTING AND CONTROL

HRSD operates in accordance with annual operating and capital budgets prepared on a basis of accounting that is different from generally accepted accounting principles.

The Operating Budget is adopted by department, with budgetary controls exercised administratively by management at the department level. The General Manager is authorized to transfer funds among departments without further approval by the Commission. Appropriations

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lapse at the end of the fiscal year. Valid, outstanding encumbrances (those for which performance under a contract is expected in the next year) are re-appropriated without further approval by the Commission and become part of the subsequent year’s budget. The Capital Budget represents a ten-year plan. Funds for the Capital Budget are adopted throughout a fiscal year on a project basis. Transfers among projects require approval by the Commission. Appropriations for these budgets continue until the purpose of the appropriation has been fulfilled.

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Glossary of Financial Terms

Appropriation: An authorization granted by the Commission to incur obligations for specific purposes. Appropriations are usually limited to amount, purpose and time. Basis of Accounting: HRSD’s financial statements report the financial position and results of operations of HRSD in accordance with generally accepted accounting principles in the United States of America (GAAP). Bond Ratings: A grade given to bonds that represents a measure of their credit quality. Private independent rating services such as Standard & Poor's, Moody's and Fitch provide these evaluations of a bond issuer's financial strength, or its the ability to pay a bond's principal and interest in a timely fashion. Capital Improvement Program (CIP): Ten-year plan for major non-recurring facility, infrastructure, or acquisition expenditures that expand or improve HRSD and/or community assets. Projects included in the CIP include physical descriptions, implementation schedules, year of expenditure cost and funding source estimates, and an indication of HRSD Commission priorities and community benefits Centum Cubic Feet (CCF): Typical unit in which industrial-consumption of natural gas or water is measured; each CCF being 100 cubic-feet. CIP Percent Cash Funded: Percent of each year’s capital improvement plan funded with cash through transfers from operations. HRSD’s Financial Policy requires that at least 15 percent of each year’s planned capital improvements be funded with cash. This ratio indicates the amount of capital improvements that are not leveraged. Days Cash on Hand: Measured by current and non-current cash and investments, plus any restricted cash and investments, if available for general system purposes, divided by operating and maintenance expenses less depreciation, divided by 365. This calculation will exclude accrued debt service for the next fiscal year and all funds in the Risk Reserve and Renewal and Replacement Reserve. Debt Service: Amount of money necessary to pay principal and interest on bonds outstanding. Debt Service as a Percent of Revenues: Total revenues divided by total debt service. This ratio measures the debt service burden compared to total revenues. Risk Management Reserve: HRSD maintains a self-insurance program for some of its risk exposures. HRSD’S Financial Policy requires HRSD to maintain a Risk Management Reserve as of the end of the fiscal year of not less than 25 percent of projected annual self-insured claims costs for known, retained risks. Senior Debt Service Coverage: Current-year revenues available for debt service divided by current-year senior lien debt service. This ratio indicates the financial margin to meet current senior lien debt service with current revenues available. HRSD’s Financial Policy requires that Senior Debt Service Coverage will not be less than 1.5 times senior lien debt service. When

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calculating compliance with this coverage requirement, HRSD may make reasonable adjustments to the net revenues as presented on a basis consistent with generally accepted accounting principles. HRSD’s Senior Trust Agreement requires Senior Debt Service Coverage, which is determined by dividing the Income Available for Debt Service by the Maximum Annual Debt Service, will not be less than 1.2 times. Total Debt Service (Adjusted): Calculated in accordance with HRSD’s Subordinate Trust Agreement, the ratio determined by dividing the Net Revenues by annual debt service. In such calculation, funds spent on Locality Assets may be excluded from the calculation of Net Revenues under the circumstances described within the definitions of Net Revenues and Operating Expenses. Annual debt service will be based on actual principal and interest payments during the year (i.e., not accrual based). Total Debt Service Coverage Ratio (GAAP): Calculated in accordance with HRSD’s Senior Trust Agreement, the ratio determined by dividing the Net Revenues by annual debt service. In such calculation, funds spent on Locality Assets are considered an expense. Annual debt service will be based on actual principal and interest payments during the year (i.e., not accrual based). Trust Agreement: The formal agreement between bond holders, acting through a trustee, and HRSD. Unrestricted Cash: Unrestricted cash and investments at fiscal year-end that are not earmarked for another purpose.

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FinancialForecast

Financial Forecast (in thousands) 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039Operating Budget Forecast

Projected Annual Water Consumption Decline 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%Projected Wastewater Rate Increase 9.1% 9.0% 9.1% 9.0% 7.0% 7.0% 7.0% 7.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 3.5% 3.5%

Revenues YOY Op Rev 7.6% 7.7% 7.6% 5.7% 5.7% 5.8% 5.7% 4.8% 4.8% 4.8% 4.8% 4.8% 4.8% 4.9% 4.9% 4.8% 4.9% 2.4% 2.4%Operating Revenues 324,650$ 349,347$ 376,115$ 404,884$ 427,953$ 452,536$ 478,582$ 506,039$ 530,455$ 555,786$ 582,476$ 610,475$ 639,736$ 670,677$ 703,238$ 737,360$ 772,988$ 810,510$ 829,961$ 850,256$ Non-operating Revenues 13,155 13,422 13,518 13,699 13,714 13,914 14,709 14,871 15,193 15,103 15,575 15,895 15,963 17,226 17,117 17,628 18,372 19,341 19,422 19,725 Total Revenues 337,805 362,768 389,633 418,584 441,667 466,450 493,291 520,910 545,648 570,890 598,051 626,370 655,699 687,903 720,355 754,989 791,360 829,851 849,383 869,981

ExpensesSalaries 57,346 59,560 61,859 64,247 66,726 69,302 71,977 74,755 77,641 80,638 83,057 85,549 88,115 90,759 93,482 96,286 99,175 102,150 105,214 108,371 Benefits 24,217 25,330 26,485 27,680 28,930 30,237 31,604 33,034 34,529 36,093 37,578 39,127 40,745 42,435 44,199 46,042 47,967 49,978 52,078 54,273 Materials & Supplies 8,129 8,457 8,799 9,154 9,524 9,909 10,309 10,725 11,159 11,610 12,079 12,441 12,814 13,199 13,595 14,002 14,422 14,855 15,301 15,760 Transportation 1,579 1,623 1,668 1,715 1,763 1,812 1,862 1,914 1,968 2,022 2,079 2,141 2,206 2,272 2,340 2,410 2,482 2,557 2,634 2,713 Utilities 12,726 13,083 8,851 9,099 16,294 27,008 38,553 39,978 41,456 42,990 69,684 72,068 102,833 107,181 110,897 114,743 118,722 122,840 127,100 131,509 Chemical Purchases 10,715 11,044 11,383 11,732 12,092 12,464 12,846 13,241 13,647 14,066 14,498 14,933 15,381 15,842 16,317 16,807 17,311 17,831 18,365 18,916 Contractual Services 34,471 36,195 38,005 39,905 41,900 43,995 46,195 48,504 50,930 53,476 56,150 57,834 59,570 61,357 63,197 65,093 67,046 69,057 71,129 73,263 Miscellaneous Expenses 6,824 7,029 7,240 7,457 7,681 7,911 8,148 8,393 8,645 8,904 9,171 9,446 9,730 10,021 10,322 10,632 10,951 11,279 11,618 11,966 Major Repairs and Replacements 9,001 9,272 9,550 9,836 10,131 10,435 10,748 11,071 11,403 11,745 12,097 12,460 12,834 13,219 13,616 14,024 14,445 14,878 15,324 15,784 Capital Acquisitions 302 311 320 330 339 350 360 371 382 394 405 417 430 443 456 470 484 498 513 529 Total Operating Appropriations from Budget 165,309 171,903 174,157 181,154 195,380 213,421 232,603 241,986 251,759 261,938 296,798 306,418 344,657 356,726 368,421 380,509 393,005 405,923 419,277 433,084

YOY Op Exp 4.0% 1.3% 4.0% 7.9% 9.2% 9.0% 4.0% 4.0% 4.0% 13.3% 3.2% 12.5% 3.5% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3%Debt Service 63,895 64,316 66,690 75,386 77,231 92,744 95,259 113,274 112,486 133,158 134,812 152,568 146,697 155,036 152,495 157,013 155,085 168,488 169,830 164,619 Transfer to Capital Improvement Plan (PAYGO) 108,341 120,240 138,931 158,717 158,197 125,260 155,359 149,095 181,149 152,950 149,503 160,368 109,313 175,813 174,162 182,661 199,280 246,781 242,512 233,621 Transfer to General Reserve (Unrestricted Cash) - 6,306 9,663 3,129 10,651 34,806 9,839 16,312 - 22,576 16,655 6,721 54,720 - 24,933 34,444 43,608 8,258 17,343 38,215 Transfer to Risk Management Reserve 260 4 192 198 208 219 230 242 254 267 281 296 311 327 344 362 381 401 421 443 Total Appropriations 337,805$ 362,768$ 389,633$ 418,584$ 441,667$ 466,450$ 493,291$ 520,910$ 545,648$ 570,890$ 598,051$ 626,370$ 655,699$ 687,903$ 720,355$ 754,989$ 791,360$ 829,851$ 849,383$ 869,981$

Capital Improvement Budget ForecastBeginning Capital Reserves 76,631$ 648$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Sources of Funds Debt funded (Revenue Bonds and Interim Financing) - 63,654 87,069 141,283 141,803 174,740 144,641 175,905 193,851 97,050 100,497 59,632 90,687 24,187 50,838 102,339 135,720 103,219 107,488 76,379 Virginia Clean Water Revolving Loan Fund 30,246 3,218 - - - - - - - - - - - - - - - - - - Hampton Roads Sanitation District - Cash 108,341 120,240 138,931 158,717 158,197 125,260 155,359 149,095 181,149 152,950 149,503 160,368 109,313 175,813 174,162 182,661 199,280 246,781 242,512 233,621 Reimbursements 430 5,241 4,000 - - - - - - - - - - - - - - - - - Total Capital Resources 215,648 193,000 230,000 300,000 300,000 300,000 300,000 325,000 375,000 250,000 250,000 220,000 200,000 200,000 225,000 285,000 335,000 350,000 350,000 310,000 Uses of Funds - Capital Expenditures 215,000 193,000 230,000 300,000 300,000 300,000 300,000 325,000 375,000 250,000 250,000 220,000 200,000 200,000 225,000 285,000 335,000 350,000 350,000 310,000 Ending Capital Resources 648$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Reserves Balance ForecastDays Cash on Hand 361 days 365 days 365 days 365 days 365 days 365 days 365 days 365 days 367 days 365 days 365 days 365 days 365 days 367 days 365 days 365 days 365 days 365 days 365 days 365 daysUnrestricted Cash 175,230$ 181,536$ 191,199$ 194,327$ 204,979$ 239,784$ 249,624$ 265,936$ 265,936$ 288,512$ 305,167$ 311,888$ 366,608$ 366,608$ 391,541$ 425,985$ 469,593$ 477,851$ 495,194$ 533,409$ Risk Reserve 3,613 3,617 3,808 4,007 4,215 4,434 4,664 4,906 5,160 5,428 5,709 6,005 6,316 6,644 6,988 7,350 7,731 8,132 8,553 8,997 Total Reserves Balance 178,843$ 185,153$ 195,007$ 198,334$ 209,193$ 244,218$ 254,287$ 270,842$ 271,096$ 293,940$ 310,877$ 317,893$ 372,924$ 373,251$ 398,529$ 433,335$ 477,324$ 485,983$ 503,747$ 542,405$ Financial Ratios ForecastTotal Debt Service Coverage (GAAP) 2.41 2.73 2.88 2.90 2.97 2.38 2.48 2.20 2.43 2.07 2.11 2.02 1.92 2.04 2.11 2.05 2.03 2.05 2.04 2.01Total Debt Service Coverage (Adjusted) 2.36 2.73 3.05 3.02 3.04 2.66 2.61 2.41 2.51 2.28 2.14 2.05 2.02 2.07 2.22 2.31 2.48 2.46 2.47 2.61

CIP % Cash Funded (current year contributions) 50% 62% 60% 53% 53% 42% 52% 46% 48% 61% 60% 73% 55% 88% 77% 64% 59% 71% 69% 75%Debt Service as a % of Total Revenues 19% 18% 17% 18% 18% 20% 20% 22% 21% 23% 23% 24% 23% 23% 21% 21% 20% 20% 20% 19%

2.41

2.73

2.88

2.90

2.97

2.38

2.48

2.20

2.43

2.07

2.11

2.02

1.92

2.04

2.11

2.05

2.03

2.05

2.04

2.01

2.36

2.73

3.05

3.02

3.04

2.66

2.61

2.41

2.51

2.28

2.14

2.05

2.02

2.07

2.22

2.31

2.48

2.46

2.47

2.61

Total Debt Service POLICY

Total Debt Service (GAAP) TARGET

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039

Tota

l Deb

t Ser

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Cov

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Total Debt Service Coverage Ratio by Type

Total Debt Service Coverage (GAAP) Total Debt Service Coverage (Adjusted) Total Debt Service POLICY Total Debt Service (GAAP) TARGET

15

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16

OperatingBudget

Adopted Increase/ PercentFY-2020 FY-2019 (Decrease) Change

Operating RevenuesWastewater Treatment Charges 323,395,000$ 297,062,000$ 26,333,000$ 9%Miscellaneous 1,255,000 1,405,000 (150,000) (11%)

Total Operating Revenue 324,650,000 298,467,000 26,183,000 9%

Non-Operating RevenuesWastewater Facility Charges 6,160,000 6,075,000 85,000 1%Investment Earnings 4,000,000 2,500,000 1,500,000 60%Build America Bond Subsidy 2,400,000 2,400,000 - 0%Other 595,000 820,000 (225,000) (27%)

Total Non-Operating Revenues 13,155,000 11,795,000 1,360,000 12%

Total Revenues 337,805,000$ 310,262,000$ 27,543,000$ 9%

Operating AppropriationsGeneral Management 460,252$ 624,583$ (164,331)$ (26%)Communications 444,116 423,764 20,352 5%Finance 14,566,681 13,884,533 682,148 5%Information Technology 15,854,415 15,089,692 764,723 5%Talent Management 2,515,281 2,293,202 222,079 10%Operations 103,821,085 98,842,274 4,978,811 5%Engineering 7,689,862 7,903,702 (213,840) (3%)Water Quality 14,778,034 14,913,423 (135,389) (1%)General Expenses 5,529,093 5,761,766 (232,673) (4%)

Total Operating Appropriations 165,658,819 159,736,939 5,921,880 4%

Appropriations for Debt Service and TransfersDebt Service 63,544,841 62,811,000 733,841 1%Transfer to Capital Improvement Program (CIP) 108,341,340 87,475,061 20,866,279 24%Transfer to Risk Management Reserve 260,000 239,000 21,000 9%

Total Appropriations for Debt Service and Transfers 172,146,181 150,525,061 21,621,120 14%

Total Appropriations 337,805,000$ 310,262,000$ 27,543,000$ 9%

Operating Budget

17

General Information Talent Water General Management Communications Finance Technology Management Operations Engineering Quality Expenses

Personal Services 332,938$ 237,112$ 6,066,008$ 4,428,545$ 1,531,227$ 34,501,596$ 3,983,260$ 7,815,545$ (1,550,006)$ Fringe Benefits 80,814 88,004 2,630,381 1,554,295 615,845 15,418,203 1,479,398 3,199,333 (849,700) Materials & Supplies 10,000 45,000 70,780 1,250,050 58,500 5,256,561 24,130 1,395,500 18,000 Transportation 7,000 11,500 11,850 22,200 28,100 1,447,280 20,470 30,406 - Utilities - - 282,000 1,180,500 - 10,755,360 - 2,700 505,000 Chemical Purchases - - - - - 10,714,718 - - - Contractual Services 9,000 33,000 5,236,464 6,502,100 48,000 15,996,648 1,998,816 1,696,700 7,157,799 Major Repairs - - - 651,000 - 8,330,479 - 20,000 - Capital Assets - - - - - 301,600 - - - Miscellaneous Expense 20,500 29,500 269,198 265,725 233,609 1,098,640 183,788 617,850 248,000

Operating Approporiations 460,252$ 444,116$ 14,566,681$ 15,854,415$ 2,515,281$ 103,821,085$ 7,689,862$ 14,778,034$ 5,529,093$

Full-time Positions:

Current 2 3 102 45 16 515 43 110

Changes - - - 5 - 1 1 4

Budgeted 2 3 102 50 16 516 44 114

Operating Budget Summary

18

Percent FY-2019 Increase/ PercentFY-2020 of Budget Budget Decrease Inc/(Dec)

Personal Services 57,346,225$ 17.0% 55,331,885$ 2,014,340$ 4%Fringe Benefits 24,216,573 7.2% 24,296,169 (79,596) (0%)Materials & Supplies 8,128,521 2.4% 7,190,245 938,276 13%Transportation 1,578,806 0.5% 1,444,741 134,065 9%Utilities 12,725,560 3.8% 12,245,138 480,422 4%Chemical Purchases 10,714,718 3.2% 10,703,626 11,092 0%Contractual Services 38,678,527 11.4% 37,363,437 1,315,090 4%Major Repairs 9,001,479 2.7% 7,832,425 1,169,054 15%Capital Assets 301,600 0.1% 601,500 (299,900) (50%)Miscellaneous Expense 2,966,810 0.9% 2,727,773 239,037 9%

Operating Approporiations 165,658,819 49.0% 159,736,939 5,921,880 4%

Debt Service Costs 63,544,841 18.8% 62,811,000 733,841 1%Transfer to Capital Improvement Program (CIP) 108,341,340 32.1% 87,475,061 20,866,279 24%Transfer to Risk Management 260,000 0.1% 239,000 21,000 9%

Appropriations for Debt Service and Transfers 172,146,181 51.0% 150,525,061 21,621,120 14%

337,805,000$ 100.0% 310,262,000$ 27,543,000$ 9%

Full-time Positions:

Current 836

Changes 11

Budgeted 847

Operating Budget Summary

19

Operating Budget Charts

Wastewater Treatment Charges

$323,395,000

Miscellaneous $1,255,000

Wastewater Facility Charges

$6,160,000 Investment Earnings

$4,000,000

Build America Bond Subsidy

$2,400,000

Other $595,000

Revenues and Transfers In $337,805,000

20

Operating Budget Charts

General Management $460,252

Communications $444,116

Talent Management $2,515,281

Finance $14,566,681

Information Technology $15,854,415

Operations $103,821,085

Engineering $7,689,862

Water Quality $14,778,034

General Expenses $5,529,093

Debt Service $63,544,841

Transfer to CIP $108,341,340

Transfer to Risk Reserve

$260,000

Expenses and Transfers Out $337,805,000

21

FY-2020 FY-2019 Increase/ Percentage Budget Budget (Decrease) Change

Personal Services 332,938$ 427,748$ (94,810)$ (22%)Fringe Benefits 80,814 122,835 (42,021) (34%)Material & Supplies 10,000 10,000 - 0%Transportation 7,000 14,000 (7,000) (50%)Contractual Services 9,000 20,000 (11,000) (55%)Miscellaneous 20,500 30,000 (9,500) (32%)Total 460,252$ 624,583$ (164,331)$ (26%)

GradeAdopted FY-2019 Adjustments

Final FY-2019 Adjustments FY-2020

General Manager 1 1 1Special Assistant for Compliance Assurance 12 1 (1) 0 0Commission Secretary 6 1 1 1Total 3 (1) 2 0 2

Positions

General Management DepartmentThe General Manager supervises the department directors and the Commission Secretary. The Commission Secretary provides administrativesupport to the General Manager as well as the HRSD Commission.

Expenditure Budget

22

FY-2020 FY-2019 Increase/ Percentage Budget Budget (Decrease) Change

Personal Services 237,112$ 247,062$ (9,950)$ (4%)Fringe Benefits 88,004 101,402 (13,398) (13%)Material & Supplies 45,000 45,000 - 0%Transportation 11,500 13,800 (2,300) (17%)Contractual Services 33,000 - 33,000 0%Miscellaneous 29,500 16,500 13,000 79%Total 444,116$ 423,764$ 20,352$ 5%

GradeAdopted FY-2019 Adjustments

Final FY-2019 Adjustments FY-2020

Director of Communications 12 1 1 1Community Relations Liason 6 1 (1) 0 0Public Information Specialist 6 0 1 1 1Community Educator 3 1 1 1Total 3 0 3 0 3

Communications DepartmentThe Communications Department supports HRSD’s mission and vision through public outreach, community engagement, educational programmingand environmental and locality partnerships. The department manages internal and external communications and branding through numerouschannels - including publications, traditional media, social media and web, graphic design, speaking engagements, tours, and special events.

Expenditure Budget

Positions

23

FY-2020 FY-2019 Increase/ PercentageBudget Budget (Decrease) Change

Personal Services 6,066,008$ 5,965,582$ 100,426$ 2%Fringe Benefits 2,630,381 2,526,249 104,132 4%Material & Supplies 70,780 86,610 (15,830) (18%)Transportation 11,850 14,250 (2,400) (17%)Utilities 282,000 271,430 10,570 4%Contractual Services 5,236,464 4,781,891 454,573 10%Miscellaneous 269,198 238,521 30,677 13%Total 14,566,681$ 13,884,533$ 682,148$ 5%

GradeAdopted FY-2019 Adjustments

Final FY-2019 Adjustments FY-2020

Director of Finance 12 1 1 1Chief of Accounting & Finance 11 1 1 1Chief of Customer Care Center 11 1 1 1Chief of Procurement 11 1 1 1Accounting Manager 9 2 1 3 3Capital Program Manager 9 0 1 1 1Customer Care Manager 9 4 4 4Business Analyst 8 3 3 3Financial Analyst 8 2 2 2Procurement Analyst 8 2 2 2Customer Care Supervisor 7 4 4 4Delinquency Management Analyst 7 0 0 1 1Accounts Payable Supervisor 6 1 1 1Accounts Receivable Specialist 6 2 2 2Payroll Specialist 6 1 1 1ProCard & Contract Administrator 6 1 1 1Procurement Specialist 6 4 4 4Accounting Coordinator 4 1 1 1Accounts Receivable Technician 4 3 3 3CIP Coordinator 4 0 1 1 1Customer Care Administrative Coordinator 4 1 1 1Customer Care Coordinator 4 4 4 4Procurement Coordinator 4 0 0 1 1Account Investigator 3 13 (2) 11 11Accounts Payable Associate 3 3 3 3Customer Care Account Representative 3 41 41 (1) 40Procurement Administrative Assistant 3 3 3 (1) 2Mail Processing Clerk 2 2 2 2Total 101 1 102 0 102

Positions

Finance DepartmentThe Finance Department is responsible for HRSD's general financial and business functions, including financial reporting, investment portfolio,debt and risk management and customer billing. The Accounting and Finance Division handles fiscal affairs such as preparing statements,budgets, management reports and payroll. The Business Intelligence Division is the functional lead for the Enterprise Resource Process system.The Capital Program Management Division coordinates the development of the annual Capital Improvement Program. The Customer CareCenter Division handles billing, payments, collections, maintenance of customer accounts and liaison with HRSD's customers. The ProcurementDivision is responsible for purchasing, renting, leasing or otherwise acquiring goods, professional and non-professional services, and certainconstruction services, managing supplier relationships and disposing of surplus property.

Expenditure Budget

24

FY-2020 FY-2019 Increase/ Percentage Budget Budget (Decrease) Change

Personal Services 4,428,545$ 4,427,273$ 1,272$ 0%Fringe Benefits 1,554,295 1,607,569 (53,274) (3%)Material & Supplies 1,250,050 851,000 399,050 47%Transportation 22,200 16,200 6,000 37%Utilities 1,180,500 1,224,000 (43,500) (4%)Contractual Services 6,502,100 6,541,000 (38,900) (1%)Major Repairs 651,000 192,000 459,000 239%Miscellaneous 265,725 230,650 35,075 15%Total 15,854,415$ 15,089,692$ 764,723$ 5%

GradeAdopted FY-2019 Adjustments

Final FY-2019 Adjustments FY-2020

Director of Information Technology 12 1 1 1Chief Information Security Officer 11 0 0 1 1Chief of Enterprise Data Services 11 1 1 1Chief of IT Operations & Support 11 1 1 1Database Administrator 9 3 3 3Enterprise Architect 9 3 3 3Industrial Automation Manager 9 1 (1) 0 0IT Systems Security Manager 9 0 0 1 1Oracle Developer 9 2 2 2Programming Development Manager 9 1 1 1Senior Systems Engineer 9 6 6 1 7Systems Analysis Manager 9 1 1 1Industrial Automation Programmer 8 5 (5) 0 0Senior Programmer Analyst 8 6 6 2 8Senior Systems Analyst 8 3 3 3SharePoint Web Developer 8 1 1 1Unix Systems Administrator 8 2 2 2IT HelpDesk Supervisor 7 1 1 1Desktop Support Analyst 6 6 6 6Systems Analyst 6 1 1 1Web Portal Programmer 5 1 1 1IT Administrative Coordinator 4 1 1 1Telecommunications Support Coordinator 4 1 1 1Computer Operator 3 3 3 3Total 51 (6) 45 5 50

Positions

Information Technology DepartmentThe Information Technology (IT) Department is responsible for HRSD's computer systems, communication systems, network infrastructure,cellular communications, cyber security, and data management functions. Staff also provides guidance and assistance in the identification andimplementation of new technologies, enhancing both organizational efficiency and efficacy. The Enterprise Data Services Division is responsiblefor application integration and support, data management, and systems analysis and support. The Information Systems and Security Division isresponsible for ensuring the safety, integrity, and availability of all HRSD information systems and business data. The Information TechnologyOperations Division supports departments in achieving their goals and objectives, providing the requisite hardware, software, storage, andnetwork connectivity, to meet business and operational requirements.

Expenditure Budget

25

FY-2020 FY-2019 Increase/ Percentage Budget Budget (Decrease) Change

Personal Services 1,531,227$ 1,366,058$ 165,169$ 12%Fringe Benefits 615,845 544,900 70,945 13%Material & Supplies 58,500 68,100 (9,600) (14%)Transportation 28,100 27,600 500 2%Contractual Services 48,000 53,200 (5,200) (10%)Miscellaneous 233,609 233,344 265 0%Total 2,515,281$ 2,293,202$ 222,079$ 10%

GradeAdopted FY-

2019 AdjustmentsFinal FY-

2019 Adjustments FY-2020Director of Talent Management 12 1 1 1ODT Manager 10 1 1 1Human Resources Manager 9 1 1 1Safety Manager 9 1 1 1Human Resources Business Analyst 8 1 1 1Human Resources Business Partner 8 0 3 3 3Industrial Hygienist 8 2 2 2Training Superintendent 8 1 1 1Human Resources Specialist 7 3 (3) 0 0ODT Resource Specialist 6 1 1 1Safety Technician 5 0 0 1 1Human Resources Coordinator 4 2 2 2ODT Coordinator 4 1 1 1Safety Coordinator 4 1 1 (1) 0Total 16 0 16 0 16

Positions

Talent Management DepartmentThe Talent Management Department attracts new talent, develops talent and retains existing talent. The Human Resources Division maintainsemployee records, handles employee recruiting and orientation, administers employee benefits. The Organizational Development and Training(ODT) Division oversees training and the apprenticeship program. The Safety Division monitors risk and works to ensure employee safety.

Expenditure Budget

26

FY-2020 FY-2019 Increase/ Percentage Budget Budget (Decrease) Change

Personal Services 34,501,596$ 33,328,889$ 1,172,707$ 4%Fringe Benefits 15,418,203 14,828,080 590,123 4%Material & Supplies 5,256,561 4,631,734 624,827 13%Transportation 1,447,280 1,305,080 142,200 11%Utilities 10,755,360 10,247,264 508,096 5%Chemical Purchases 10,714,718 10,703,626 11,092 0%Contractual Services 15,996,648 14,737,567 1,259,081 9%Major Repairs 8,330,479 7,540,425 790,054 10%Capital Assets 301,600 546,500 (244,900) (45%)Miscellaneous 1,098,640 973,109 125,531 13%Total 103,821,085$ 98,842,274$ 4,978,811$ 5%

GradeAdopted FY-2019 Adjustments

Final FY-2019 Adjustments FY-2020

Director of Operations 12 1 1 1Director of Water Technology and Research 12 1 1 1Chief of Electrical & Energy Management 11 1 (1) 0 0Chief of Electrical & Instrumentation Division 11 0 1 1 1Chief of Interceptor Operations 11 1 1 1Chief of NS Interceptors & SCD 11 1 1 1Chief of Process Engineering & Research 11 1 1 1Chief of Treatment 11 3 3 3Energy Manager 11 0 1 1 1Treatment Process Engineer 2 10 3 3 3Electrical Manager 9 2 (1) 1 1Industrial Automation Manager 9 0 1 1 1Instrumentation Manager 9 1 1 1Interceptor Engineer 9 2 2 2Plant Manager 9 1 1 1Project Manager 9 2 2 2Support Systems Manager 9 1 1 1SWIFT Project Manager 9 1 1 1Systems Manager 9 2 2 2Treatment Process Engineer 1 9 1 1 1Automotive Superintendent 8 1 1 1Condition Assessment Superintendent 8 1 1 1Electrical & Instrumentation Supervisor 8 4 4 4Electrical Superintendent 8 1 1 1Facility Superintendent 8 1 1 1Industrial Automation Programmer 8 0 5 5 5Interceptor Superintendent 8 2 2 2Plant Superintendent 8 18 18 18Chief Foreman 7 2 2 2Chief Maintenance Management 7 2 2 2Chief System Operator 7 2 2 2Coating, Concrete and Roofing Chief Inspector 7 1 1 1

Expenditure Budget

Positions

Operations DepartmentThe Operations Department is responsible for operating and maintaining all of HRSD's treatment plants, pump stations, pipelines, buildings andequipment. HRSD provides wastewater treatment services for over 1.7 million people in 18 cities and counties in Hampton Roads. Thedepartment also includes the Director of Water Technology and Research researching new technology with a focus on rapid deployment ofinnovative solutions. Services are delivered through seven divisions. There are three major treatment plant divisions (each with three treatmentplants). Services to small communities that are in the HRSD service area are provided by the Small Communities Division (SCD) – MiddlePeninsula which operates four smaller treatment plants and all the associated sewer collection systems for four counties on the Middle Peninsula,including the Town of West Point. The Small Communities Division – Surry includes the operation of two treatment plants and the associatedsewer collection systems in the County of Surry. The Electrical and Instramentation Division supports the electrical and instrumentationmaintenance and construction needs of all HRSD facilities as well as programming industrial controls and automation at HRSD facilities. The twoInterceptor Divisions operate and maintain over 500 miles of interceptor pipelines and over 100 pump stations ensuring wastewater is conveyed toeach treatment plant. The Support Systems Division is responsible for the maintenance for the HRSD fleet, all buildings, operates two carpentryshops and a full service machine shop. The department is also responsible for energy management and research to find innovative, cost effectiveways of managing our energy consumption more effectively.

27

GradeAdopted FY-2019 Adjustments

Final FY-2019 Adjustments FY-2020

Electrical & Instrumentation Process Specialist 7 1 1 1Electrical & Instrumentation Specialist 7 59 59 2 61Lead Operator 7 32 (1) 31 1 32Operations Support Specialist 7 1 1 1Automotive Foreman 6 2 2 2Coatings Inspector 6 2 2 2Condition Assessment Supervisor 6 1 1 1Engineering Assistant 6 4 4 4Interceptor Foreman 6 7 7 7Interceptor Systems Supervisor 6 2 2 2Machinist Foreman 6 1 1 1Maintenance Planner 6 3 3 3Pump Station Supervisor 6 2 2 2Automotive Technician 5 5 5 5Carpenter 5 4 4 4Condition Assessment Technician 5 2 2 (2) 0Equipment Technician 5 3 3 3Facility Maintenance Technician 5 2 2 2Interceptor Technician 5 30 30 30Machinist 5 2 2 2Maintenance Operator 5 65 2 67 1 68Plant Operator 5 74 2 76 76Heavy Equipment Operator I 4 19 19 19Materials Operations Coordinator 4 2 2 2Operations Admin Coordinator 4 1 1 1Operations Coordinator 4 2 2 2Automotive Administrative Assistant 3 1 1 1Support Systems Admin Assistant 3 1 1 (1) 0Utility Administrative Assistant 3 1 1 1SCADA Administrative Assistant 3 1 1 1Interceptor Assistant 2 28 28 28Maintenance Operations Assistant 2 52 (4) 48 48Plant Clerk 2 9 9 9Facility Assistant 1 2 2 2Custodian 1 4 4 4

Subtotal - Operations 487 5 492 1 493

Small CommunitiesSystems Manager 9 1 1 1Systems Superintendent 8 1 1 1Systems Chief Foreman 7 1 1 1Systems Lead Operator 7 3 3 3Systems Foreman 6 0 1 1 1Systems Operator 5 11 (1) 10 10Administrative Coordinator 4 1 1 1Heavy Equipment Operator I 4 1 1 1Maintenance Operations Assistant 2 3 3 3SCD Lab Assistant 2 1 1 1

Subtotal - Small Communities 23 0 23 0 23

Total 510 5 515 1 516

28

FY-2020 FY-2019 Increase/ PercentageBudget Budget (Decrease) Change

Personal Services 3,983,260$ 3,786,920$ 196,340$ 5%Fringe Benefits 1,479,398 1,431,145 48,253 3%Material & Supplies 24,130 28,201 (4,071) (14%)Transportation 20,470 14,905 5,565 37%Contractual Services 1,998,816 2,484,557 (485,741) (20%)Miscellaneous 183,788 157,974 25,814 16%Total 7,689,862$ 7,903,702$ (213,840)$ (3%)

GradeAdopted FY-2019 Adjustments

Final FY-2019 Adjustments FY-2020

Director of Engineering 12 1 1 1Chief of Asset Management 11 1 1 1Chief of Design & Construction 11 2 2 2Chief of Design & Construction - SWIFT 11 1 1 1Chief of Planning & Analysis 11 1 1 1Capital Program Manager 9 1 (1) 0 0Condition Assessment Manager 9 2 2 2Data Analysis Manager 9 1 1 1GIS Manager 9 1 1 1Hydraulic Analysis Manager 9 4 4 4Project Manager 9 9 9 9Asset Management Specialist 8 0 1 1 1Real Estate Manager 8 1 1 2 2CMMS Analyst 7 1 1 1 2Data Analyst 7 4 4 1 5Engineering Specialist 7 2 2 2GIS Analyst 7 2 2 2Contract Specialist 6 3 3 3GIS CAD Technician 5 2 2 2CIP Coordinator 4 1 (1) 0 0Administrative Coordinator 4 1 1 1CMMS Administrative Assistant 3 1 1 (1) 0Engineering Clerk 2 1 1 1Total 43 0 43 1 44

Positions

Engineering DepartmentThe Engineering Department is responsible for facility planning, design and construction and related support. The Asset Management Division isresponsible for the Computerized Maintenance Management System (CMMS) to manage asset information to inform all maintenance, replacementand capital planning decisions. The Design and Construction Divisions deliver capital projects in a manner consistent with HRSD’s qualitystandards. The Planning and Analysis Division manages the Capital Improvement Program (CIP), Hydraulic Modeling, Geographic InformationSystem (GIS), Data Analysis and Records Management System and plans the capital infrastructure required to meet the region's futurewastewater needs. The department is also responsible for all property and land acquisition to meet the needs of HRSD.

Expenditure Budget

29

FY-2020 FY-2019 Increase/ Percentage Budget Budget (Decrease) Change

Personal Services 7,815,545$ 7,582,353$ 233,192$ 3%Fringe Benefits 3,199,333 3,018,989 180,344 6%Material & Supplies 1,395,500 1,439,600 (44,100) (3%)Transportation 30,406 38,906 (8,500) (22%)Utilities 2,700 2,700 - 0%Contractual Services 1,696,700 2,117,200 (420,500) (20%)Major Repairs 20,000 100,000 (80,000) (80%)Capital Assets - 55,000 (55,000) (100%)Miscellaneous 617,850 558,675 59,175 11%Total 14,778,034$ 14,913,423$ (135,389)$ (1%)

GradeAdopted FY-2019 Adjustments

Final FY-2019 Adjustments FY-2020

Director of Water Quality 12 1 1 1Chief of Lab 11 1 1 1Chief of P3 11 1 1 1Chief of TSD 11 1 1 1Environmental Scientist 9 7 7 7Lab Manager 9 4 4 4Lab Quality Assurance Manager 9 1 1 1P3 Manager 9 4 4 4WQ/Ops Quality Assurance Manager 9 0 0 1 1Lab EDMS Administrator 8 1 1 1Lab Operations Manager 8 1 1 1Lab Supervising Chemist 8 11 1 12 12P3 Supervising Specialist 8 3 3 3TSD Operations Manager 8 1 1 1TSD Supervising Specialist 8 3 3 3P3 Administrative Supervising Specialist 7 1 1 1Lab EDMS Analyst 6 1 1 1Lab Quality Assurance Specialist 6 1 1 1Lab Specialist 6 14 14 14P3 PIMS Analyst 6 1 1 1P3 Specialist 6 3 3 3TSD Specialist 6 9 9 2 11WQ Specialist 6 1 1 1Lab Data Technician 5 1 1 1Lab Technician 5 5 5 5P3 Technician 5 11 11 11Lab Data Coordinator 4 1 1 1P3 Administrative Coordinator 4 1 1 1TSD Operations Coordinator 4 1 1 1WQ Administrative Coordinator 4 1 1 1P3 Administrative Assistant 3 2 2 2TSD Investigator 3 7 7 1 8Lab Assistant 2 7 7 7TSD Assistant 2 1 1 1Total 109 1 110 4 114

Expenditure Budget

Positions

Water Quality DepartmentThe Water Quality (WQ) Department's mission is to provide quality environmental services to support HRSD and its partners. This departmenthelps ensure compliance with HRSD environmental permits and leads regulatory advocacy through the work of three divisions. The CentralEnvironmental Laboratory (CEL) Division uses the Environmental Data Management System (EDMS) and other tools to provide analytical supportfor numerous monitoring, research and regulatory purposes. The Pretreatment and Pollution Prevention (P3) Division monitors wastewaterconveyed to treatment plants using the Pretreatment Information Management System (PIMS) and other tools, and implements its IndustrialWastewater Discharge Regulations to protect treatment plant staff, facilities and processes. The Technical Services Division (TSD) is responsiblefor a number of activities including environmental monitoring, specialized sampling, treatment process and research studies, the MunicipalAssistance Program (MAP) to assist localities, as well as all reporting required by HRSD permits.

30

FY-2020 FY-2019 Increase/ Percentage Budget Budget (Decrease) Change

Personal Services (1,550,006)$ (1,800,000)$ 249,994$ (14%)Fringe Benefits (849,700) 115,000 (964,700) (839%)Material & Supplies 18,000 30,000 (12,000) (40%)Utilities 505,000 499,744 5,256 1%Contractual Services 7,157,799 6,628,022 529,777 8%Miscellaneous 248,000 289,000 (41,000) (14%)Total General Expenses 5,529,093$ 5,761,766$ (232,673)$ (4%)

Publically Sold Bonds - Principal 17,985,000 16,740,000 1,245,000$ 7%Publically Sold Bonds - Interest 30,926,523 32,110,000 (1,183,477) (4%)VCWRLF Bonds 14,633,318 13,961,000 672,318 5%

Subtotal - Debt Service 63,544,841 62,811,000 733,841 1%

Transfer to CIP 108,341,340 87,475,061 20,866,279 24%Transfer to Risk Management 260,000 239,000 21,000 9%

Subtotal - Transfers 108,601,340 87,714,061 20,887,279 24%

Total Debt Service and Transfers 172,146,181$ 150,525,061$ 21,621,120$ 14%

General Expenses, Debt Service and Transfers

Expenditure Budget

General Expenses includes operating expenditures not assigned to any specific HRSD Department. Debt Service includes payments on bonds issued byHRSD and through the Virginia Clean Water Revolving Loan Fund (VCWRLF). Transfers Are made to fund the Capital Improvement Program (CIP) and theRisk Management reserve. The costs incurred to issue bonds are included in General Expenses - Miscellaneous.

31

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32

CapitalBudget

Capital Budget HRSD prepares a Capital Improvement Program (CIP) each year for the capital projects currently underway or proposed for the future. The first year of the CIP is authorized as the Capital Budget for FY-2020 in the amount of $215 million. The remaining years (FY-2021 to FY-2029) include all known projects planned for these years; however, approval of the plan does not authorize the Capital Budgets for those years. Each year’s Capital Budget will be approved during the budget process for the specific year. The ten-year Capital Improvement Program for FY-2020 to FY-2029 highlights the anticipated cost of each project and the fiscal year(s) in which the work is expected to occur. All costs listed in the CIP are stated in current year dollars and total approximately $2.79 billion.

• The bond component of the plan may include one or all of the following: Interim or construction financings

• Federally subsidized borrowing programs administered by the Virginia Resource Authority

• HRSD Revenue Bonds or Notes The grant component represents funds estimated to be received from a federal or state agency for specific projects. Other reimbursements, if any, include amounts paid by other parties who may participate in a project.

33

Capital Budget

CIP Budget Forecast (in thousands) Total FY-2020

to FY-2029 FY-2020 FY-2021 FY-2022 FY-2023 Beginning Capital Reserves 77,279$ 76,631$ 648$ -$ -$ Bonds 1,245,128 - 65,442 88,954 143,301

VCWRLF 33,464 30,246 3,218 - - Cash 1,423,106 108,341 118,451 137,046 156,699

Grants and Other Reimbursements 9,671 430 5,241 4,000 - Total Capital Resources 2,788,648 215,648 193,000 230,000 300,000 Capital Expenditures 2,788,000 215,000 193,000 230,000 300,000 Ending Capital Reserves $ 648 648$ -$ -$ -$

Capital Expenditures (in thousands) Total FY-2020

to FY-2029 FY-2020 FY-2021 FY-2022 FY-2023Administration 34,738$ 19,338$ 5,566$ 3,793$ 3,153$ Army Base 28,873 - - 1,607 5,024 Atlantic 62,590 16,503 10,518 10,208 4,135 Boat Harbor 255,957 23,339 28,740 15,236 16,639 Chesapeake-Elizabeth 127,841 58,726 42,923 9,338 3,805 James River 146,238 8,670 11,918 38,929 32,520 Middle Peninsula 57,733 10,702 3,244 1,611 18,788 Nansemond 309,980 20,775 25,226 7,057 10,802 Surry 7,195 6,224 971 - - Virginia Initiative Plant 123,900 5,980 11,219 28,900 38,557 Williamsburg 21,033 8,486 9,799 1,923 824 York River 18,337 2,810 2,664 1,951 4,014 General 1,291,043 32,606 33,714 96,567 141,641 Future Improvements 185,426 841 2,715 1,929 5,811 Subtotal 2,670,882 215,000 189,216 219,048 285,714 Contingency 117,118 - 3,784 10,952 14,286 Total Expenditures 2,788,000$ 215,000$ 193,000$ 230,000$ 300,000$

34

Capital Budget

CIP Budget Forecast (in thousands) Beginning Capital Reserves Bonds

VCWRLF Cash

Grants and Other Reimbursements Total Capital Resources Capital Expenditures Ending Capital Reserves

Capital Expenditures (in thousands) AdministrationArmy BaseAtlanticBoat HarborChesapeake-ElizabethJames RiverMiddle PeninsulaNansemondSurryVirginia Initiative PlantWilliamsburgYork RiverGeneralFuture Improvements SubtotalContingencyTotal Expenditures

FY-2024 FY-2025 FY-2026 FY-2027 FY-2028 FY-2029-$ -$ -$ -$ -$ -$

143,926 176,524 146,761 178,176 199,107 102,937 - - - - - -

156,074 123,476 153,239 146,824 175,893 147,063 - - - - - -

300,000 300,000 300,000 325,000 375,000 250,000 300,000 300,000 300,000 325,000 375,000 250,000

-$ -$ -$ -$ -$ -$

FY-2024 FY-2025 FY-2026 FY-2027 FY-2028 FY-20292,890$ -$ -$ -$ -$ -$

14,142 3,459 198 964 2,758 721 3,746 2,259 521 1,098 6,804 6,798

26,460 32,835 34,610 37,196 28,210 12,690 3,086 3,384 3,276 2,086 1,217 -

32,520 21,681 - - - - 22,107 1,281 - - - - 42,077 68,400 73,073 30,626 13,430 18,514

- - - - - - 22,824 7,108 4,867 4,446 - -

- - - - - - 1,905 1,601 2,394 998 - -

107,743 131,137 138,694 193,460 255,304 160,176 6,214 12,569 28,082 38,650 49,419 39,195

285,714 285,714 285,714 309,524 357,143 238,095 14,286 14,286 14,286 15,476 17,857 11,905

300,000$ 300,000$ 300,000$ 325,000$ 375,000$ 250,000$

35

FY-2020 to FY-2029Cash Flow Projections (in thousands)

CIP No Project Name Total FY-2020

to FY-2029 FY-2020 FY-2021 FY-2022 FY-2023

AD012100 Asset Management Implementation 803$ 803$ -$ -$ -$ AD012200 Water Quality Services Building Phase II 14,730$ 13,597$ 1,133$ -$ -$ AD012300 Central Environmental Laboratory Phase II 1,978$ 58$ 1,280$ 640$ -$ AD012400 Capital Program Management Improvements Phase I 1,727$ 1,727$ -$ -$ -$ AD012500 Cybersecurity Practice & Procedure Initiative 15,500$ 3,153$ 3,153$ 3,153$ 3,153$

Subtotal 34,738$ 19,338$ 5,566$ 3,793$ 3,153$

AB010000 Army Base 24-Inch and 20-Inch Transmission Main Replacements 22,339$ -$ -$ 1,607$ 4,832$ AB010500 Section W Force Main Replacement 2,090$ -$ -$ -$ 192$ AB011800 Army Base to VIP Transmission Force Main 4,443$ -$ -$ -$ -$

Subtotal 28,873$ -$ -$ 1,607$ 5,024$

AT011520 Shipps Corner Pressure Reducing Station Modifications 1,458$ 9$ 107$ 671$ 671$ AT011900 Great Bridge Interceptor Extension 16-Inch Replacement 4,444$ -$ -$ 63$ 228$ AT012910 Atlantic Treatment Plant FOG Receiving Station 1,151$ 1,116$ 35$ -$ -$ AT012920 Atlantic Treatment Plant Access Road Extension 6,386$ 1,373$ 1,900$ 3,113$ -$

AT013000 Washington District Pump Station Area Sanitary Sewer Improvements 3,227$ 228$ 784$ 2,216$ -$ AT013100 South Norfolk Area Gravity Sewer Improvements 5,460$ -$ 334$ 296$ 3,220$

AT013200Doziers Corner Pump Station and Washington District Pump Station Flooding Mitigation Improvements 258$ -$ -$ -$ 17$

AT013500 Atlantic Treatment Plant Thermal Hydrolysis Process 10,479$ 10,158$ 321$ -$ -$

AT013700Atlantic Trunk Interceptor Force Main Relocation (VDOT Laskin Road Betterment) 156$ 110$ 46$ -$ -$

AT013900 Atlantic Treatment Plant Influent Screen Expansion 1,208$ 1,208$ -$ -$ -$ AT014000 Lynnhaven-Great Neck IFM (SF-021) Relocation 1,069$ 675$ 394$ -$ -$ AT014100 Suffolk Regional Landfill Transmission Force Main 12,072$ 1,627$ 6,597$ 3,849$ -$ AT014301 Atlantic Service Area I/I Reduction Phase I (CHES) 10,651$ -$ -$ -$ -$ AT014302 Atlantic Service Area I/I Reduction Phase II (CHES) 4,478$ -$ -$ -$ -$ AT014303 Chesapeake Pump Station Capacity Improvements (AT-HPP-01C) 91$ -$ -$ -$ -$

Subtotal 62,590$ 16,503$ 10,518$ 10,208$ 4,135$

BH013020 Willard Avenue Pump Station Replacement 7,060$ 916$ 4,333$ 1,811$ -$ BH014000 West Avenue and 35th Street Interceptor Force Main Replacement 3,600$ -$ 231$ 839$ 2,528$

BH014220 Hampton Trunk Sewer Extension Divisions I and J Relocation Phase II 10,485$ 3,148$ 5,168$ 2,168$ -$ BH014500 Ivy Home-Shell Road Sewer Extension Division I Replacement 2,014$ -$ 16$ 585$ 1,414$ BH014600 46th Street Diversion Sewer Rehabilitation Replacement 7,562$ 652$ 4,358$ 2,552$ -$ BH014700 Boat Harbor Outlet Sewer Improvements 5,663$ 4,151$ 1,512$ -$ -$ BH014800 Jefferson Avenue Extension Gravity Improvements 1,938$ 1,450$ 488$ -$ -$ BH014900 Hampton Trunk Sewer Extension Division K Gravity Improvements 3,728$ 428$ 2,326$ 974$ -$ BH015000 Orcutt Avenue and Mercury Blvd Gravity Sewer Improvements 4,850$ 4,850$ -$ -$ -$ BH015100 Bloxoms Corner Force Main Replacement 2,868$ 108$ 182$ 778$ 1,800$

BH015300 Boat Harbor Treatment Plant Switchgear and Controls Replacements 6,420$ 4,521$ 1,899$ -$ -$ BH015500 LaSalle Avenue Interceptor Force Main Replacement 1,887$ -$ -$ -$ -$

BH015600Hampton Trunk A and B Replacement-Jefferson Avenue to Walnut Avenue 9,643$ 991$ 6,101$ 2,552$ -$

BH015700Boat Harbor Treatment Plant Effluent Pump Station and Transmission Force Main 148,413$ 2,125$ 2,125$ 2,125$ 10,091$

BH015801 14th Street Offline Storage (BH-HPP-01A) 14,566$ -$ -$ 853$ 808$ BH015802 Claremont Pump Station Upgrade (BH-HPP-01B) 10,745$ -$ -$ -$ -$ BH015803 Chesapeake Avenue Interceptor Improvements (BH-HPP-01C) 14,515$ -$ -$ -$ -$

Subtotal 255,957$ 23,339$ 28,740$ 15,236$ 16,639$ Note: Fats, Oils, and Grease (FOG),

Virginia Department of Transportation (VDOT) Interceptor Force Main (IFM) In Flow/Infiltration (I/I) Virginia Initiative Plant (VIP)

Administration

Army Base

Atlantic

Boat Harbor

36

FY-2020 to FY-2029Cash Flow Projections (in thousands)

CIP No Project Name

AD012100 Asset Management ImplementationAD012200 Water Quality Services Building Phase IIAD012300 Central Environmental Laboratory Phase IIAD012400 Capital Program Management Improvements Phase IAD012500 Cybersecurity Practice & Procedure Initiative

Subtotal

AB010000 Army Base 24-Inch and 20-Inch Transmission Main ReplacementsAB010500 Section W Force Main ReplacementAB011800 Army Base to VIP Transmission Force Main

Subtotal

AT011520 Shipps Corner Pressure Reducing Station ModificationsAT011900 Great Bridge Interceptor Extension 16-Inch ReplacementAT012910 Atlantic Treatment Plant FOG Receiving StationAT012920 Atlantic Treatment Plant Access Road Extension

AT013000 Washington District Pump Station Area Sanitary Sewer ImprovementsAT013100 South Norfolk Area Gravity Sewer Improvements

AT013200Doziers Corner Pump Station and Washington District Pump Station Flooding Mitigation Improvements

AT013500 Atlantic Treatment Plant Thermal Hydrolysis Process

AT013700Atlantic Trunk Interceptor Force Main Relocation (VDOT Laskin Road Betterment)

AT013900 Atlantic Treatment Plant Influent Screen ExpansionAT014000 Lynnhaven-Great Neck IFM (SF-021) RelocationAT014100 Suffolk Regional Landfill Transmission Force MainAT014301 Atlantic Service Area I/I Reduction Phase I (CHES)AT014302 Atlantic Service Area I/I Reduction Phase II (CHES)AT014303 Chesapeake Pump Station Capacity Improvements (AT-HPP-01C)

Subtotal

BH013020 Willard Avenue Pump Station ReplacementBH014000 West Avenue and 35th Street Interceptor Force Main Replacement

BH014220 Hampton Trunk Sewer Extension Divisions I and J Relocation Phase IIBH014500 Ivy Home-Shell Road Sewer Extension Division I ReplacementBH014600 46th Street Diversion Sewer Rehabilitation ReplacementBH014700 Boat Harbor Outlet Sewer ImprovementsBH014800 Jefferson Avenue Extension Gravity ImprovementsBH014900 Hampton Trunk Sewer Extension Division K Gravity ImprovementsBH015000 Orcutt Avenue and Mercury Blvd Gravity Sewer ImprovementsBH015100 Bloxoms Corner Force Main Replacement

BH015300 Boat Harbor Treatment Plant Switchgear and Controls ReplacementsBH015500 LaSalle Avenue Interceptor Force Main Replacement

BH015600Hampton Trunk A and B Replacement-Jefferson Avenue to Walnut Avenue

BH015700Boat Harbor Treatment Plant Effluent Pump Station and Transmission Force Main

BH015801 14th Street Offline Storage (BH-HPP-01A)BH015802 Claremont Pump Station Upgrade (BH-HPP-01B)BH015803 Chesapeake Avenue Interceptor Improvements (BH-HPP-01C)

SubtotalNote: Fats, Oils, and Grease (FOG),

Virginia Department of Transportation (VDOT) Interceptor Force Main (IFM) In Flow/Infiltration (I/I) Virginia Initiative Plant (VIP)

Administration

Army Base

Atlantic

Boat Harbor

FY-2024 FY-2025 FY-2026 FY-2027 FY-2028 FY-2029

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

2,890$ -$ -$ -$ -$ -$ 2,890$ -$ -$ -$ -$ -$

13,629$ 2,271$ -$ -$ -$ -$ 513$ 1,187$ 198$ -$ -$ -$

-$ -$ -$ 964$ 2,758$ 721$ 14,142$ 3,459$ 198$ 964$ 2,758$ 721$

-$ -$ -$ -$ -$ -$ 2,097$ 2,057$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ 1,610$ -$ -$ -$ -$ -$

39$ 202$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 521$ 1,098$ 5,687$ 3,345$ -$ -$ -$ -$ 1,098$ 3,380$ -$ -$ -$ -$ 19$ 73$

3,746$ 2,259$ 521$ 1,098$ 6,804$ 6,798$

-$ -$ -$ -$ -$ -$ 3$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ 82$ 1,124$ 680$ -$ -$ -$

-$ -$ -$ -$ -$ -$

17,736$ 25,381$ 25,381$ 25,381$ 25,381$ 12,690$ 8,114$ 4,792$ -$ -$ -$ -$

526$ 738$ 6,154$ 3,327$ -$ -$ -$ 801$ 2,395$ 8,489$ 2,830$ -$

26,460$ 32,835$ 34,610$ 37,196$ 28,210$ 12,690$

37

FY-2020 to FY-2029Cash Flow Projections (in thousands)

CIP No Project Name Total FY-2020

to FY-2029 FY-2020 FY-2021 FY-2022 FY-2023

CE010400 Independence Boulevard Pressure Reducing Station Modifications 3,411$ 3,411$ -$ -$ -$ CE010520 Newtown Road Interceptor Force Main Relocation 2,042$ 28$ 2,014$ -$ -$

CE011300Birchwood Trunk 24-Inch 30-Inch Force Main at Independence Boulevard Replacement Phase II 1,425$ -$ -$ 509$ 916$

CE011600 Poplar Hall Davis Corner Trunk 24-Inch Gravity Sewer Improvements 1,789$ -$ 21$ 134$ 643$ CE011700 Western Trunk Force Main Replacement 1,653$ 1,653$ -$ -$ -$ CE011810 Chesapeake-Elizabeth Treatment Plant Decommissioning 11,082$ -$ -$ 200$ 2,016$ CE011821 Elbow Road Pressure Reducing Station 5,743$ 3,210$ 2,533$ -$ -$ CE011822 Providence Road PRS Upgrades and Interconnect Force Main 10,899$ 7,693$ 3,206$ -$ -$ CE011823 Virginia Beach Boulevard Force Main Phase VI 21,029$ 8,629$ 9,918$ 2,482$ -$ CE011825 Salem Road Interconnect Force Main 1,080$ 1,080$ -$ -$ -$ CE011826 Providence Road Off-Line Storage Facility 26,929$ 16,306$ 10,624$ -$ -$ CE011827 Atlantic PRS Reliability Modifications 9,637$ 4,288$ 5,349$ -$ -$ CE011828 Kempsville PRS Reliability Modifications 4,187$ 2,992$ 1,194$ -$ -$ CE011829 Laskin Road PRS Reliability Modifications 2,173$ 2,173$ -$ -$ -$ CE011830 Little Creek Pump Station Modifications 580$ 580$ -$ -$ -$ CE011835 Virginia Beach City Pump Station Upgrades, Phase V 1,789$ -$ -$ 1,789$ -$ CE011840 Oceana Off-Line Storage Facility 14,245$ 2,093$ 8,061$ 4,091$ -$ CE012100 Witchduck Road Interceptor Force Main Improvements 3,558$ -$ 3$ 133$ 230$ CE012200 Pine Tree PRS Reliability Modifications 4,590$ 4,590$ -$ -$ -$

Subtotal 127,841$ 58,726$ 42,923$ 9,338$ 3,805$

JR010600 Lucas Creek Pump Station Upgrade 6,347$ 133$ 303$ 5,912$ -$ JR011300 Patrick Henry Pump Station Interconnection Force Main 1,267$ 903$ 365$ -$ -$ JR011730 Jefferson Avenue Interceptor Force Main Replacement Phase III 11,134$ 3,235$ 6,762$ 1,137$ -$ JR012100 Huxley to Middle Ground Force Main Extension 3,528$ 3,252$ 276$ -$ -$

JR013000Morrison Pump Station Discharge Force Main Replacement & Capacity Enhancements 1,187$ 91$ 457$ 638$ -$

JR013200Lucas Creek-Woodhaven Interceptor Force Main Replacement Phase II 2,025$ 820$ 1,205$ -$ -$

JR013400James River Treatment Plant Advanced Nutrient Reduction Improvements 120,750$ 237$ 2,550$ 31,242$ 32,520$

Subtotal 146,238$ 8,670$ 11,918$ 38,929$ 32,520$

MP011700Middle Peninsula Interceptor Systems Pump Station Control and SCADA Upgrades and Enhancements 30$ 30$ -$ -$ -$

MP012000 King William Treatment Plant Improvements Phase I 3,380$ 2,295$ 1,085$ -$ -$ MP012400 West Point Treatment Plant Tertiary Filter 241$ 241$ -$ -$ -$ MP012500 Mathews Main Vacuum Pump Station Replacement 2,126$ 1,818$ 308$ -$ -$ MP012900 Mathews Nursing Home Line Vacuum Sewer Main Improvements 779$ 779$ -$ -$ -$ MP013000 Small Communities Collection System Rehabilitation Phase I 63$ 63$ -$ -$ -$ MP013010 Small Communities Collection System Rehabilitation Phase II 351$ 351$ -$ -$ -$ MP013020 Small Communities Collection System Rehabilitation Phase III 527$ 261$ 265$ -$ -$ MP013100 Small Communities Mobile Dewatering Facilities Installation 1,192$ 1,192$ -$ -$ -$ MP013300 King William Treatment Plant Improvements Phase II 13,927$ 178$ 483$ 432$ 6,405$ MP013500 Middlesex Collection System-Cooks Corner 1,248$ 1,246$ 3$ -$ -$ MP013600 Middlesex Interceptor Force Main Phase I-Cooks Corner 1,647$ 1,644$ 3$ -$ -$

MP013700

Middlesex Interceptor System Program Phase II–Urbanna to Mathews Transmission Force Main

26,540$ 334$ 1,097$ 1,043$ 12,021$ MP013800 Middlesex Interceptor System Program Phase III 5,413$ -$ -$ 136$ 363$ MP013900 Urbanna Wastewater Treatment Plant Reliability Improvements 270$ 270$ -$ -$ -$

Subtotal 57,733$ 10,702$ 3,244$ 1,611$ 18,788$ Note: Pressure Reducing Station (PRS)

Supervisory Control and Data Acquisition (SCADA)

James River

Chesapeake-Elizabeth

Middle Peninsula

38

FY-2020 to FY-2029Cash Flow Projections (in thousands)

CIP No Project Name

CE010400 Independence Boulevard Pressure Reducing Station ModificationsCE010520 Newtown Road Interceptor Force Main Relocation

CE011300Birchwood Trunk 24-Inch 30-Inch Force Main at Independence Boulevard Replacement Phase II

CE011600 Poplar Hall Davis Corner Trunk 24-Inch Gravity Sewer ImprovementsCE011700 Western Trunk Force Main ReplacementCE011810 Chesapeake-Elizabeth Treatment Plant DecommissioningCE011821 Elbow Road Pressure Reducing StationCE011822 Providence Road PRS Upgrades and Interconnect Force MainCE011823 Virginia Beach Boulevard Force Main Phase VICE011825 Salem Road Interconnect Force MainCE011826 Providence Road Off-Line Storage FacilityCE011827 Atlantic PRS Reliability ModificationsCE011828 Kempsville PRS Reliability ModificationsCE011829 Laskin Road PRS Reliability ModificationsCE011830 Little Creek Pump Station ModificationsCE011835 Virginia Beach City Pump Station Upgrades, Phase VCE011840 Oceana Off-Line Storage FacilityCE012100 Witchduck Road Interceptor Force Main ImprovementsCE012200 Pine Tree PRS Reliability Modifications

Subtotal

JR010600 Lucas Creek Pump Station UpgradeJR011300 Patrick Henry Pump Station Interconnection Force MainJR011730 Jefferson Avenue Interceptor Force Main Replacement Phase IIIJR012100 Huxley to Middle Ground Force Main Extension

JR013000Morrison Pump Station Discharge Force Main Replacement & Capacity Enhancements

JR013200Lucas Creek-Woodhaven Interceptor Force Main Replacement Phase II

JR013400James River Treatment Plant Advanced Nutrient Reduction Improvements

Subtotal

MP011700Middle Peninsula Interceptor Systems Pump Station Control and SCADA Upgrades and Enhancements

MP012000 King William Treatment Plant Improvements Phase IMP012400 West Point Treatment Plant Tertiary FilterMP012500 Mathews Main Vacuum Pump Station ReplacementMP012900 Mathews Nursing Home Line Vacuum Sewer Main ImprovementsMP013000 Small Communities Collection System Rehabilitation Phase IMP013010 Small Communities Collection System Rehabilitation Phase IIMP013020 Small Communities Collection System Rehabilitation Phase IIIMP013100 Small Communities Mobile Dewatering Facilities InstallationMP013300 King William Treatment Plant Improvements Phase IIMP013500 Middlesex Collection System-Cooks CornerMP013600 Middlesex Interceptor Force Main Phase I-Cooks Corner

MP013700

Middlesex Interceptor System Program Phase II–Urbanna to Mathews Transmission Force Main

MP013800 Middlesex Interceptor System Program Phase IIIMP013900 Urbanna Wastewater Treatment Plant Reliability Improvements

SubtotalNote: Pressure Reducing Station (PRS)

Supervisory Control and Data Acquisition (SCADA)

James River

Chesapeake-Elizabeth

Middle Peninsula

FY-2024 FY-2025 FY-2026 FY-2027 FY-2028 FY-2029

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$

991$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

1,391$ 2,086$ 2,086$ 2,086$ 1,217$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

704$ 1,298$ 1,190$ -$ -$ -$ -$ -$ -$ -$ -$ -$

3,086$ 3,384$ 3,276$ 2,086$ 1,217$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$

32,520$ 21,681$ -$ -$ -$ -$ 32,520$ 21,681$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

6,405$ 25$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

12,021$ 25$ -$ -$ -$ -$ 3,682$ 1,231$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ 22,107$ 1,281$ -$ -$ -$ -$

39

FY-2020 to FY-2029Cash Flow Projections (in thousands)

CIP No Project Name Total FY-2020

to FY-2029 FY-2020 FY-2021 FY-2022 FY-2023

NP010620 Suffolk Pump Station Replacement 16,108$ 1,084$ 9,183$ 5,841$ -$

NP011300Suffolk Interceptor Force Main Section I Main Line Valving Replacement 1,282$ 856$ 426$ -$ -$

NP012400 Western Branch Sewer System Gravity Improvements 2,788$ -$ -$ 161$ 161$ NP012500 Shingle Creek and Hickman's Branch Gravity Sewer Improvements 1,565$ 1,180$ 385$ -$ -$ NP012600 Deep Creek Interceptor Force Main Replacement 4,207$ 3,521$ 687$ -$ -$ NP013000 Nansemond Treatment Plant Motor Control Center Replacements 2,081$ 471$ 471$ 471$ 471$ NP013400 Deep Creek Interceptor Force Main Risk Mitigation Project 2,210$ 1,770$ 440$ -$ -$ NP013500 Nansemond Treatment Plant Land Acquisition-Land Stabilization 4,503$ 2,666$ 1,837$ -$ -$

NP013600 Nansemond Treatment Plant Land Acquisition-Structure Demolition 1,632$ 996$ 635$ -$ -$

NP013700 Nansemond Treatment Plant Struvite Recovery Facility Improvements 9,563$ 4,808$ 4,755$ -$ -$

NP013810Nansemond Treatment Plant Advanced Nutrient Reduction Improvements Ph I 833$ 833$ -$ -$ -$

NP013820Nansemond Treatment Plant Advanced Nutrient Reduction Improvements Ph II 219,712$ -$ 4,155$ 584$ 10,170$

NP013901 Nansemond Service Area I/I Reduction Phase II (CHES) 11,256$ -$ -$ -$ -$ NP013902 Nansemond Service Area I/I Reduction Phase III (CHES) 8,580$ -$ -$ -$ -$

NP014000 Wilroy Pressure Reducing Station and Offline Storage (NP-HPP-03) 15,930$ -$ -$ -$ -$ NP014100 Nansemond Treatment Plant Shoreline Improvements Phase II 2,890$ -$ -$ -$ -$

NP014200Nansemond Treatment Plant Secondary Clarifier Inlet Replacement Phase I 690$ 463$ 227$ -$ -$

NP014300 Smithfield Interim Pressure Reducing Station 1,200$ 1,200$ -$ -$ -$ NP014400 Nansemond Treatment Plant Influent Screen Replacement 2,950$ 925$ 2,025$ -$ -$

Subtotal 309,980$ 20,775$ 25,226$ 7,057$ 10,802$

SU010000 Town of Surry Pump Station and Discharge Force Main 1,158$ 1,158$ -$ -$ -$ SU010100 Surry County Treatment Plant Infrastructure Improvements 3,044$ 2,073$ 971$ -$ -$ SU010200 Surry Hydraulic Improvements and Interceptor Force Main 2,993$ 2,993$ -$ -$ -$

Subtotal 7,195$ 6,224$ 971$ -$ -$

VP010920Norview Estabrook Division I 18-Inch Force Main Replacement Phase II, Section 2 1,420$ 73$ 81$ 128$ 758$

VP014010 Ferebee Avenue Pump Station Replacement 5,914$ 334$ -$ -$ 2,790$

VP014020Sanitary Sewer Project 1950 12 Inch Force Main and 24 and 18 Inch Gravity Replacement 8,472$ 544$ -$ 3,115$ 3,398$

VP014700 Ingleside Road Pump Station Replacement 3,106$ 136$ 67$ 67$ 688$ VP014800 Lee Avenue-Wesley Street Horizontal Valve Replacement 1,029$ -$ -$ 103$ 926$ VP015320 Larchmont Area Sanitary Sewer Improvements 13,663$ 289$ 386$ 2,652$ 5,954$ VP015400 Lafayette Norview-Estabrook Pump Station Replacements 15,473$ 825$ 1,384$ 4,188$ 4,188$

VP016320 Virginia Initiative Plant Nutrient Reduction Improvements Contract B 602$ 602$ -$ -$ -$ VP016500 Norview-Estabrook Division I 12-Inch Force Main Replacement 2,023$ 38$ 104$ 1,305$ 576$

VP016700Norview-Estabrook Division I 18-Inch Force Main Replacement Phase III 2,486$ 91$ 59$ 290$ 1,534$

VP017100 Central Norfolk Area Gravity Sewer Improvements 2,534$ -$ -$ 49$ 211$ VP018000 Park Avenue Pump Station Replacement 6,740$ 677$ 4,042$ 2,021$ -$ VP018200 Effingham Interceptor Vault Removal 814$ 471$ 343$ -$ -$ VP018301 VIP Service Area I/I Reduction Phase I (PORTS) 12,843$ 570$ 1,692$ 5,510$ 5,054$ VP018302 Portsmouth Pump Station Upgrades (VIP-HPP-04B) 10,138$ -$ -$ -$ -$ VP018303 VIP Service Area I/I Reduction Phase III (PORTS) 9,266$ 541$ 1,180$ 4,906$ 2,638$ VP018304 Camden Avenue Pump Station Upgrades (VIP-HPP-04D) 5,276$ -$ -$ 223$ 244$ VP018305 Camden Avenue Gravity Improvements (VIP-HPP-04E) 2,524$ -$ -$ -$ 171$

VP018400State Street Pressure Reducing Station and Offline Storage (VIP-HPP-05) 18,430$ 638$ 878$ 4,343$ 9,428$

VP018500 Elizabeth River Crossing Reliability Improvements 1,150$ 150$ 1,000$ -$ -$ Subtotal 123,900$ 5,980$ 11,219$ 28,900$ 38,557$

WB012200 North Trunk Force Main Part B Replacement 475$ 475$ -$ -$ -$

WB012400 Williamsburg Treatment Plant Generator and Switchgear Replacement 15,193$ 6,216$ 8,277$ 700$ -$ WB012500 Lodge Road Pump Station Upgrades 1,516$ 8$ 156$ 528$ 824$

WB012600Kingsmill Pump Station Piping Replacement and Wet Well Rehabilitation 2,420$ 1,453$ 967$ -$ -$

WB012700Williamsburg Treatment Plant Advanced Nutrient Reduction Improvements Phase I 309$ 309$ -$ -$ -$

WB012900 Williamsburg Treatment Plant Administration Building Renovation 1,120$ 25$ 399$ 696$ -$ Subtotal 21,033$ 8,486$ 9,799$ 1,923$ 824$

Nansemond

Surry

Williamsburg

Virginia Initiative Plant

40

FY-2020 to FY-2029Cash Flow Projections (in thousands)

CIP No Project Name

NP010620 Suffolk Pump Station Replacement

NP011300Suffolk Interceptor Force Main Section I Main Line Valving Replacement

NP012400 Western Branch Sewer System Gravity ImprovementsNP012500 Shingle Creek and Hickman's Branch Gravity Sewer ImprovementsNP012600 Deep Creek Interceptor Force Main ReplacementNP013000 Nansemond Treatment Plant Motor Control Center ReplacementsNP013400 Deep Creek Interceptor Force Main Risk Mitigation ProjectNP013500 Nansemond Treatment Plant Land Acquisition-Land Stabilization

NP013600 Nansemond Treatment Plant Land Acquisition-Structure Demolition

NP013700 Nansemond Treatment Plant Struvite Recovery Facility Improvements

NP013810Nansemond Treatment Plant Advanced Nutrient Reduction Improvements Ph I

NP013820Nansemond Treatment Plant Advanced Nutrient Reduction Improvements Ph II

NP013901 Nansemond Service Area I/I Reduction Phase II (CHES)NP013902 Nansemond Service Area I/I Reduction Phase III (CHES)

NP014000 Wilroy Pressure Reducing Station and Offline Storage (NP-HPP-03)NP014100 Nansemond Treatment Plant Shoreline Improvements Phase II

NP014200Nansemond Treatment Plant Secondary Clarifier Inlet Replacement Phase I

NP014300 Smithfield Interim Pressure Reducing Station NP014400 Nansemond Treatment Plant Influent Screen Replacement

Subtotal

SU010000 Town of Surry Pump Station and Discharge Force MainSU010100 Surry County Treatment Plant Infrastructure ImprovementsSU010200 Surry Hydraulic Improvements and Interceptor Force Main

Subtotal

VP010920Norview Estabrook Division I 18-Inch Force Main Replacement Phase II, Section 2

VP014010 Ferebee Avenue Pump Station Replacement

VP014020Sanitary Sewer Project 1950 12 Inch Force Main and 24 and 18 Inch Gravity Replacement

VP014700 Ingleside Road Pump Station ReplacementVP014800 Lee Avenue-Wesley Street Horizontal Valve ReplacementVP015320 Larchmont Area Sanitary Sewer ImprovementsVP015400 Lafayette Norview-Estabrook Pump Station Replacements

VP016320 Virginia Initiative Plant Nutrient Reduction Improvements Contract BVP016500 Norview-Estabrook Division I 12-Inch Force Main Replacement

VP016700Norview-Estabrook Division I 18-Inch Force Main Replacement Phase III

VP017100 Central Norfolk Area Gravity Sewer ImprovementsVP018000 Park Avenue Pump Station ReplacementVP018200 Effingham Interceptor Vault RemovalVP018301 VIP Service Area I/I Reduction Phase I (PORTS)VP018302 Portsmouth Pump Station Upgrades (VIP-HPP-04B)VP018303 VIP Service Area I/I Reduction Phase III (PORTS)VP018304 Camden Avenue Pump Station Upgrades (VIP-HPP-04D)VP018305 Camden Avenue Gravity Improvements (VIP-HPP-04E)

VP018400State Street Pressure Reducing Station and Offline Storage (VIP-HPP-05)

VP018500 Elizabeth River Crossing Reliability ImprovementsSubtotal

WB012200 North Trunk Force Main Part B Replacement

WB012400 Williamsburg Treatment Plant Generator and Switchgear ReplacementWB012500 Lodge Road Pump Station Upgrades

WB012600Kingsmill Pump Station Piping Replacement and Wet Well Rehabilitation

WB012700Williamsburg Treatment Plant Advanced Nutrient Reduction Improvements Phase I

WB012900 Williamsburg Treatment Plant Administration Building RenovationSubtotal

Nansemond

Surry

Williamsburg

Virginia Initiative Plant

FY-2024 FY-2025 FY-2026 FY-2027 FY-2028 FY-2029

-$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ 2,466$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 196$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$

39,414$ 67,937$ 72,124$ 24,239$ 1,089$ -$ -$ -$ -$ 1,495$ 2,142$ 7,620$ -$ -$ -$ 820$ 1,606$ 6,154$

-$ 463$ 949$ 3,871$ 7,985$ 2,662$ -$ -$ -$ 201$ 609$ 2,079$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

42,077$ 68,400$ 73,073$ 30,626$ 13,430$ 18,514$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

379$ -$ -$ -$ -$ -$ 2,790$ -$ -$ -$ -$ -$

1,416$ -$ -$ -$ -$ -$ 1,611$ 537$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ 4,382$ -$ -$ -$ -$ -$ 4,188$ 698$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

511$ -$ -$ -$ -$ -$ 1,067$ 1,207$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 17$ -$ -$ -$ -$ -$

111$ 714$ 4,867$ 4,446$ -$ -$ -$ -$ -$ -$ -$ -$

2,279$ 2,530$ -$ -$ -$ -$ 930$ 1,423$ -$ -$ -$ -$

3,143$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

22,824$ 7,108$ 4,867$ 4,446$ -$ -$

-$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

41

FY-2020 to FY-2029Cash Flow Projections (in thousands)

CIP No Project Name Total FY-2020

to FY-2029 FY-2020 FY-2021 FY-2022 FY-2023

YR010300Foxridge Sanitary Sewer System Sections 1, 4 & 5 Gravity and Woodland Road Fox Hill Road Gravity Sewer Rehabilitation 3,122$ -$ -$ 227$ 1,501$

YR010520 Magruder Mercury Interceptor Force Main Replacement - Section B 4,255$ 68$ 332$ 1,398$ 2,454$

YR010530 Magruder Mercury Interceptor Force Main Replacement - Section C 5,592$ -$ -$ 32$ 58$ YR011900 Bethel-Poquoson Force Main Part III Replacement 1,019$ 235$ 784$ -$ -$

YR013600 York River Treatment Plant Solids Handling Electrical Improvements 430$ 430$ -$ -$ -$

YR013710York River Treatment Plant Advanced Nutrient Reduction Improvements Phase I 2,000$ 1,900$ 100$ -$ -$

YR013900 York River System Isolation Valve Installation and Replacement 1,919$ 177$ 1,448$ 294$ -$ Subtotal 18,337$ 2,810$ 2,664$ 1,951$ 4,014$

GN010730 Horizontal Valve Replacement Phase III 1,082$ 457$ 625$ -$ -$ GN011700 Pump Station Generators and Standby Pump Upgrades 5,264$ 2,632$ 2,632$ -$ -$

GN012130Manhole Rehabilitation-Replacement Phase I and North Shore Siphon Chamber Rehabilitation Phase I 3,834$ 2,700$ 1,134$ -$ -$

GN012140 Pump Station Wet Well Rehabilitation Phase I 515$ 515$ -$ -$ -$

GN012800Interceptor Systems Pump Station Control and SCADA Upgrades and Enhancements 600$ 600$ -$ -$ -$

GN013300 Treatment Plant Grease Handling Facilities 8,832$ 2,031$ 4,527$ 2,274$ -$ GN014500 Renewable Energy Facility and Associated Plant Improvements -$ -$ -$ -$ -$ GN014900 North Shore Gravity Sewer Improvements Phase I 4,539$ 229$ 220$ 2,551$ 1,538$ GN015000 South Shore Gravity Sewer Improvements Phase I 754$ -$ 38$ 67$ 243$ GN015300 Interceptor System Valve Improvements Phase I 2,594$ 161$ 555$ 1,408$ 469$ GN015400 South Shore Aerial Crossing Improvements 268$ 4$ 15$ 11$ 141$ GN015800 North Shore Automated Diversion Facilities 1,338$ 803$ 535$ -$ -$ GN016200 Sustainable Water Phase 3 – Demonstration Facility (SWIFT) 71$ 71$ -$ -$ -$ GN016310 Integrated Planning of SWIFT 7,664$ 2,002$ 1,941$ 1,941$ 1,780$ GN016311 Outfall Dispersion Modeling for Full Scale SWIFT 1,181$ 306$ 350$ 175$ 350$ GN016320 Program Management of SWIFT Full Scale Implementation 67,665$ 3,204$ 4,321$ 5,842$ 10,052$ GN016330 Well Services for SWIFT 1,157$ 1,157$ -$ -$ -$ GN016341 VIP SWIFT Land Acquisition 15,000$ -$ -$ -$ 15,000$ GN016342 Williamsburg SWIFT Land Acquisition 868$ 868$ -$ -$ -$ GN016343 James River SWIFT Land Acquisition 3,310$ 3,310$ -$ -$ -$ GN016350 Williamsburg SWIFT Facility 105,905$ 230$ 7,284$ 45,686$ 46,671$ GN016351 Williamsburg Recharge Wells 10,300$ 76$ 392$ 7,458$ 2,374$ GN016360 James River SWIFT Facility 151,871$ 3,170$ 1,157$ 12,242$ 43,694$ GN016361 James River Recharge Wells 10,780$ -$ -$ 299$ 554$ GN016370 York River SWIFT Facility 136,960$ -$ -$ -$ -$ GN016371 York River Recharge Wells 13,940$ -$ -$ -$ -$ GN016380 Nansemond SWIFT Facility 282,991$ -$ -$ 5,553$ 740$ GN016381 Nansemond Recharge Wells 24,630$ -$ -$ -$ -$ GN016390 VIP SWIFT Facility 287,187$ -$ -$ -$ 6,966$ GN016391 VIP Recharge Wells 37,503$ -$ -$ -$ -$ GN016392 VIP SWIFT Site Work 38,185$ -$ -$ -$ 187$ GN016400 Treatment Plant Dewatering Replacement Phase I 2,828$ 2,828$ -$ -$ -$ GN016500 JR and NTP Dewatering Building Mod and Centrifuge Replacement 597$ 597$ -$ -$ -$ GN016600 South Shore High Point Air Vent Installation Phase I 309$ 309$ -$ -$ -$ GN016700 Treatment Plant Solids Handling Replacement Phase II 2,569$ 469$ 2,100$ -$ -$ GN016800 Fleet Management (FY19) -$ -$ -$ -$ -$ GN016900 Mobile Workforce Implementation 515$ 515$ -$ -$ -$ GN017100 Climate Change Planning 3,000$ 1,375$ 1,500$ 125$ -$

GN017200Interceptor Systems Pump Station Control and SCADA Upgrades and Enhancements Phase II 9,005$ 750$ 2,458$ 4,050$ 1,748$

GN017300 Treatment Plant Dewatering Replacement Program 24,500$ -$ -$ 3,500$ 7,000$ GN017400 Treatment Plant Dewatering Replacement Phase III 3,500$ -$ 735$ 2,074$ 691$ GN017500 Fleet Management Program 16,195$ -$ 1,193$ 1,312$ 1,443$ GN017600 Fleet Management (FY20) 1,237$ 1,237$ -$ -$ -$

Subtotal 1,291,043$ 32,606$ 33,714$ 96,567$ 141,641$

IP010800 Regional Wet Weather Improvements 29,750$ 52$ 225$ 1,425$ 2,201$ IP011000 Advanced Treatment Infrastructure Upgrades 155,676$ 789$ 2,490$ 503$ 3,610$

Subtotal 185,426$ 841$ 2,715$ 1,929$ 5,811$ 2,670,882$ 215,000$ 189,216$ 219,048$ 285,714$

Note: James River Treatment Plant (JR) Nansemond Treatment Plant (NTP)

CIP TOTALS

Future Improvements

York River

General

42

FY-2020 to FY-2029Cash Flow Projections (in thousands)

CIP No Project Name

YR010300Foxridge Sanitary Sewer System Sections 1, 4 & 5 Gravity and Woodland Road Fox Hill Road Gravity Sewer Rehabilitation

YR010520 Magruder Mercury Interceptor Force Main Replacement - Section B

YR010530 Magruder Mercury Interceptor Force Main Replacement - Section CYR011900 Bethel-Poquoson Force Main Part III Replacement

YR013600 York River Treatment Plant Solids Handling Electrical Improvements

YR013710York River Treatment Plant Advanced Nutrient Reduction Improvements Phase I

YR013900 York River System Isolation Valve Installation and ReplacementSubtotal

GN010730 Horizontal Valve Replacement Phase IIIGN011700 Pump Station Generators and Standby Pump Upgrades

GN012130Manhole Rehabilitation-Replacement Phase I and North Shore Siphon Chamber Rehabilitation Phase I

GN012140 Pump Station Wet Well Rehabilitation Phase I

GN012800Interceptor Systems Pump Station Control and SCADA Upgrades and Enhancements

GN013300 Treatment Plant Grease Handling FacilitiesGN014500 Renewable Energy Facility and Associated Plant ImprovementsGN014900 North Shore Gravity Sewer Improvements Phase IGN015000 South Shore Gravity Sewer Improvements Phase IGN015300 Interceptor System Valve Improvements Phase IGN015400 South Shore Aerial Crossing ImprovementsGN015800 North Shore Automated Diversion FacilitiesGN016200 Sustainable Water Phase 3 – Demonstration Facility (SWIFT)GN016310 Integrated Planning of SWIFTGN016311 Outfall Dispersion Modeling for Full Scale SWIFTGN016320 Program Management of SWIFT Full Scale ImplementationGN016330 Well Services for SWIFTGN016341 VIP SWIFT Land AcquisitionGN016342 Williamsburg SWIFT Land AcquisitionGN016343 James River SWIFT Land AcquisitionGN016350 Williamsburg SWIFT FacilityGN016351 Williamsburg Recharge WellsGN016360 James River SWIFT FacilityGN016361 James River Recharge WellsGN016370 York River SWIFT FacilityGN016371 York River Recharge WellsGN016380 Nansemond SWIFT FacilityGN016381 Nansemond Recharge WellsGN016390 VIP SWIFT FacilityGN016391 VIP Recharge WellsGN016392 VIP SWIFT Site WorkGN016400 Treatment Plant Dewatering Replacement Phase IGN016500 JR and NTP Dewatering Building Mod and Centrifuge ReplacementGN016600 South Shore High Point Air Vent Installation Phase IGN016700 Treatment Plant Solids Handling Replacement Phase IIGN016800 Fleet Management (FY19)GN016900 Mobile Workforce ImplementationGN017100 Climate Change Planning

GN017200Interceptor Systems Pump Station Control and SCADA Upgrades and Enhancements Phase II

GN017300 Treatment Plant Dewatering Replacement ProgramGN017400 Treatment Plant Dewatering Replacement Phase IIIGN017500 Fleet Management ProgramGN017600 Fleet Management (FY20)

Subtotal

IP010800 Regional Wet Weather ImprovementsIP011000 Advanced Treatment Infrastructure Upgrades

Subtotal

Note: James River Treatment Plant (JR) Nansemond Treatment Plant (NTP)

CIP TOTALS

Future Improvements

York River

General

FY-2024 FY-2025 FY-2026 FY-2027 FY-2028 FY-2029

1,393$ -$ -$ -$ -$ -$

3$ -$ -$ -$ -$ -$

509$ 1,601$ 2,394$ 998$ -$ -$ -$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

1,905$ 1,601$ 2,394$ 998$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 406$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 97$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

11,049$ 10,756$ 8,527$ 3,021$ 3,132$ 7,760$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

5,560$ 473$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

58,633$ 25,499$ 7,476$ -$ -$ -$ 8,722$ 1,205$ -$ -$ -$ -$ 2,986$ 3,538$ 14,804$ 47,951$ 52,263$ 15,418$

-$ -$ 386$ 2,193$ 10,905$ 456$ 14,158$ 64,403$ 55,216$ 61,291$ 66,409$ 15,221$

-$ 469$ 702$ 13,088$ 10,194$ 177$ 308$ 11,412$ 20,564$ 62,375$ 96,163$ 89,398$ -$ -$ -$ 1,399$ 10,414$ 25,690$ 735$ 8,136$ 29,099$ 28$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ 3,500$ 3,500$ -$ -$ 3,500$ 3,500$

-$ -$ -$ -$ -$ -$ 1,587$ 1,746$ 1,921$ 2,113$ 2,324$ 2,556$

-$ -$ -$ -$ -$ -$ 107,743$ 131,137$ 138,694$ 193,460$ 255,304$ 160,176$

2,268$ 2,063$ 3,126$ 5,651$ 5,769$ 6,970$ 3,946$ 10,507$ 24,956$ 32,999$ 43,650$ 32,226$ 6,214$ 12,569$ 28,082$ 38,650$ 49,419$ 39,195$

285,714$ 285,714$ 285,714$ 309,524$ 357,143$ 238,095$

43

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44

1434 Air Rail AvenueVirginia Beach, Virginia 23455

www.hrsd.com

Printed on recycled paper using environmentally friendly ink.The photos used throughout this publication feature HRSD’s Virginia Initiative Plant in Norfolk, Virginia.